For those who think that GAAP are the only valid earnings, and that Non-GAAP are just 'cheating", here are the latest PSIX results.
GAAP earnings 68 cents
Adjusted earnings 39 cents
Whoa! Adjusted just about HALF of GAAP? How can that be? Because, as usual, GAAP has a lot of nonsense in it:
GAAP is up because the stock price was down so they had to reevaluate the “liability” of the warrants downward due to the lower stock price. This gave more “earnings”. (Note that if the stock price had been up, repricing of the warrants for more liability would give lower earnings. If you think that makes sense, well…)
In addition, GAAP income includes a non-cash gain resulting from a decrease in the estimated fair value of the “contingent consideration liability” recorded in connection with an acquisition. This also gave more GAAP earnings.
Now if you think GAAP gives a better idea of how the actual business did in the quarter, be my guest. As I said, it’s nonsense to me.