Richard’s Wisdom - “Dividends and Earnings”
Earnings? Reported earnings, GAAP earnings, operating earnings, pro forma earnings -- does anyone know what in God's name corporations are earning today, if indeed they are earning anything?
Standard & Poor's now reports "operating earnings" for the companies in the S&P. Barron's simply takes the S&P figures and shows them in their weekly rundown. What are operating earnings? They are earnings before interest expenses, income taxes, extraordinary items, preferred dividends and special charges to earnings.