9
4/14/2003
How to Define Standard &
Poor’s Core Earnings
•Begin with
as-reported earnings, a
widely used measure defined with
GAAP
•Make
adjustments to focus on the
company’s core business
•As-reported
EPS is GAAP net income
excluding discontinued operations
and extraordinary
items.
•It is the
longest time series for S&P
500 EPS, extending back over
decades.