Objective: Locate and extract the company’searnings information.
Several fields need to be extracted for this task. Many fields will be found in paragraphs at the beginning of the article while some will be found in tables towards the bottom. The find function (ctrl+f for Windows) (command+f for Apple) will help significantly for this task. Terms to search are listed in the instructions for each field.
Note: There are many fields, but "n/a" will be selected for the vast majority of fields. Most press releases will contain about 4 of the below fields.
For each figure there will likely be a diluted and basic figure. If it is not clear whether the figure is basic or diluted, select N/A. Most companies will list Basic and Diluted figures for each field. Basic means earnings per share was calculated with the current number of outstanding shares while diluted means earnings per share was calculated with the possibility of additional shares.
Adjusted EPS: In addition to “adjusted,” this field can be referred to as “non-GAAP,” “pro forma,” “core,” or “cash.” If no figure is clearly labeled as one of the names above, you may assume the per-share figure you should be marking is the GAAP figure. The adjusted figure field will likely be left blank and N/A will be selected in this case. If multiple figures are shown for more than one of the above names (ie. if you see both a pro-forma figure and a core figure), mark N/A.
Example: “AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, reported net sales of approximately $2.5 billion for the fourth quarter of 2014, a decrease of approximately 13.1% compared to net sales of approximately $2.9 billion for the fourth quarter of 2013. Reported net income was $0.85 per share and adjusted net income, excluding restructuring and other infrequent expenses, was $1.18 per share for the fourth quarter of 2014.” The answer is 1.18.
Continuing Operations EPS: The key word to look for is “continuing”. If more than one continuing EPS figure exists in the article, we are interested in the adjusted/non-gaap figure. Like adjusted EPS, the continuing EPS figure may be in the paragraphs or a table.
The answer for above is 0.44.
NOTE: Also notice that the per share figure is selected rather than the total amount.
Operating EPS: The keyword to identify this field is “operating”.
GAAP EPS: While GAAP EPS is often labeled as such, if GAAP is not specifically mentioned ahead of a per-share figure, (for example: “net income per share…” without a prefix like adjusted or pro-forma), assume the figure is GAAP. GAAP stands for General Accepted Accounting Principals and is the earnings per share figure the government requires. For this reason it can be found in most releases unlike other datapoints. GAAP EPS is also unique in that it can usually be found in tables rather than the preceeding paragraphs.
Adjusted FFO: Adjusted FFO is very similar to Adjusted EPS, but is the term used for real estate companies. The acronym FFO can also be preceded with non-GAAP, pro forma and core. If no figure is clearly labeled as a non-GAAP type, or more than one non-GAAP type is displayed in the release mark N/A.
NOTE: FFO can sometimes be considered as the equivalent of EPS for a company which has its main operations related to real estate, for example a REIT. If a press release includes both FFO and EPS figures, please highlight and select each value appropriately.
Continuing FFO: See instructions for “Continuing Operations EPS.”
GAAP FFO: See instructions for “GAAP EPS.”
Adjusted Revenue: Adjusted revenue will typically be found in the table of the release. For all of the revenue figures, we need at least 3 decimals (ie. 3.735 Billion). The correct number will be labeled adjusted or non-GAAP. For all revenue figures, select three decimals if available. These numbers are typically found in the table.
Total Revenue: Total revenue may be listed as total revenue or simply just revenue.
Net Revenue: Net revenue will be clearly labeled net revenue if it exists in the article.
Net Premiums Earned: this is effectively a revenue/sales figure for an insurance company. This item must be filled in the same way as other sales figures, ie with a qualifier or unit.