DV Earnings Line & Estimates Indicator #
- The DV Earnings Line plots a company’s earnings on its Weekly, or Monthly stock charts giving users a clear picture of how a stock’s earnings compares to its price, either on a dollar or percentage basis. Estimates can be added or removed depending on your preference.
- Deepvue’s Earnings are Non-GAAP. (See GAAP vs. Non-GAAP explanation below)
DV Earnings Line #
DV Earnings Line with Estimates #
- Just click the ‘Show Estimates’ box under Inputs, in the settings pop-up. (See below.)
DV Earnings Line and Estimates Settings #
- Settings can be accessed by double clicking on the indicator, or its associated ‘settings’ icon.
Inputs #
- To add ‘Estimates” click the ‘Show Estimates’ box under Inputs, in the settings pop-up.
Style #
GAAP vs. Non-GAAP #
GAAP (Generally Accepted Accounting Principles) and Non-GAAP (Non-GAAP) are two different accounting standards used by companies to report their financial performance. Here’s a breakdown of the key differences and their impact on earnings and sales:
- GAAP:
- GAAP refers to a set of standardized accounting principles, standards, and procedures that companies must adhere to when preparing financial statements. These principles are established by standard-setting bodies like the Financial Accounting Standards Board (FASB) in the United States.
- GAAP aims to provide consistency, comparability, and transparency in financial reporting, ensuring that investors and stakeholders have accurate and reliable information about a company’s financial health.
- GAAP-compliant financial statements follow specific rules and guidelines regarding revenue recognition, expense recognition, asset valuation, and financial statement presentation.
- Non-GAAP:
- Non-GAAP refers to financial measures that are presented in addition to, or instead of, the GAAP measures in a company’s financial statements. These measures are not necessarily standardized and can vary between companies.
- Non-GAAP measures often exclude certain expenses, gains, or losses that a company deems to be non-recurring, non-operational, or non-cash in nature. They may also adjust for the impact of extraordinary events or one-time charges.
- Companies may provide Non-GAAP measures to give investors a clearer picture of their operational performance, excluding factors that they believe distort the true underlying performance of the business.
Impact on Earnings and Sales: #
- Earnings:
- Reporting under GAAP tends to result in lower reported earnings compared to Non-GAAP measures. This is because GAAP requires companies to adhere to strict rules for recognizing revenue and expenses, which may include recognizing certain costs that Non-GAAP measures exclude.
- Non-GAAP earnings may be higher than GAAP earnings because they often exclude one-time expenses or non-operating items, providing a more favorable view of the company’s profitability from ongoing operations.
- Sales:
- GAAP and Non-GAAP measures can also differ in terms of reported sales figures. While GAAP sales figures are based on strict revenue recognition criteria, Non-GAAP measures may adjust for factors such as deferred revenue or one-time sales events.
- Non-GAAP sales figures may provide a clearer view of a company’s underlying revenue generation capabilities, especially when there are significant fluctuations due to non-recurring events or accounting adjustments.
In summary, while GAAP provides a standardized framework for financial reporting, Non-GAAP measures allow companies to present alternative views of their financial performance, potentially impacting reported earnings and sales figures. Investors should carefully consider the differences between these measures when analyzing a company’s financial statements.
