- GAAP earnings remain overstated despite a year-over-year rise in Core Earnings for all eleven sectors of the NC 2000 through the trailing twelve months ended 1Q22.
- GAAP Earnings rose much faster over the last year, at 63%, compared to 47% for Core Earnings. Since 2020, corporate profits have been much less volatile than indicated by GAAP.
- The last time GAAP Earnings exceeded Core Earnings was in the TTM ended June 2007. Not long after, GAAP earnings took a dive.
For further details see:
All Cap Index And Sectors: Earnings Distortions Flash Warning Signs For Equity Investors