Non-GAAP Earnings Are About To Plunge The Most Since 2009; As For GAAP Don' Even Ask...
![Non-GAAP Earnings Are About To Plunge The Most Since 2009; As For GAAP Don' Even Ask... Non-GAAP Earnings Are About To Plunge The Most Since 2009; As For GAAP Don' Even Ask...](https://5ux.com/sites/5ux.com/files/styles/medium_250/public/resize/remote/573f4bb496dc3f81fd9de2bf6f99e2a9-600x343.jpg?itok=p3vv6R7l)
Now that Q4 EPS is almost in the history books with 494 S&P500 companies reporting, we can look at the numbers: blended 4Q EPS is $29.49 (-2.9% y/y) with GAAP EPS of $19.92. As DB admits, a 67% GAAP-to-non GAAP ratio is well below the normal ~90% ex. recessions, exacerbated by asset impairments and restructuring costs especially at Energy.
This is how DB shows this almost unprecedented divergence between GAAP and non-GAAP "earnings":