Personal Finance & Money Asked by shrimptail on February 2, 2021
I’m a newbie here. This is my first post. I would appreciate it if someone will help me. I’m a bit confused about EPS values.
For example, Nvidia’s Oct 2020 earnings:
TradingView shows:
EPS Est. 2.58 vs Actual 2.12, -17.75% surprise
Nasdaq shows:
EPS Est. 1.92 vs Actual 2.41, +25.52% surprise
MarketWatch shows:
EPS Est. 2.91 vs Actual 2.91, +0.00% surprise
Yahoo Finance shows:
EPS Est. 2.57 vs Actual 2.91, +13.20% surprise
Why do these differences occur?
Which numbers do you think I should trust?
Can someone explain to me?
NVIDIA reported both GAAP (Generally Accepted Accounting Principles) and non-GAAP earnings amounts at the end of their Q3. Their GAAP EPS was 2.12, but their non-GAAP EPS was 2.91. Different sites apparently use different values.
I can't reconcile the values that Nasdaq uses. It's possible that their data hasn't fully incorporated the reported results since they were just announced a day ago. If you look at the Financials section their Q3 results aren't posted there yet.
Non-GAAP results are typically adjusted to remove the effect on non-recurring events, so that results from one period to the next are comparable.
Whether you use the GAAP or non-GAAP results depending on what you're trying to measure. For example, if you're trying to measure financial growth, non-GAAP might give you a sense of how their actual operations are growing. You obviously can't just ignore the items that are excluded in non-GAAP results, but you might look at both depending on what you're evaluating.
Answered by D Stanley on February 2, 2021
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