Non-GAAP earnings are misleading. The SEC has a mixed record on the subject. In 2010, they loosened the reins on non-GAAP. More recently, they are tightening. Does what the SEC says about non-GAAP matter? Probably not as much as you think.
We’ve been out ahead of the issue, sounding the alarm on non-GAAP earnings for years. To learn more, tune into CNBC on Wednesday, May 25, at 11:40am EST. New Constructs CEO, David Trainer, will be discussing the credibility of non-GAAP earnings and its damaging effects on shareholders.
Here are some of the many instances where we’ve rang the alarm bells on the use of non-GAAP metrics, ranging from misleading company results to the effects on executive compensation.
- Danger Zone: Companies With Most Misleading Non-GAAP Earnings
- The Dangers of Non-GAAP Earnings
- Non-GAAP Earnings Boost Executive Pay At Expense of Shareholders
- Danger Zone: Compensation Committees
- The SEC Is Starting To Worry About Non-GAAP Earnings
- Danger Zone: Valeant Pharmaceuticals
The issue of non-GAAP is not going away. Investors have to perform their own diligence to cut through the misleading stories told by companies. To learn more about New Constructs’ diligence and ability to cut through the non-GAAP nonsense, catch CEO David Trainer on CNBC this Wednesday, at 11:40am EST.
To get alerted to all our research, including our Danger Zone picks, Long Ideas, and any future non-GAAP reports, join our mailing list here.