(Photo by Ramon Costa/SOPA Images/LightRocket via Getty Images) LightRocket via Getty Images“Trading strategies that exploit [non-recurring] earnings produce abnormal returns of 7-to-10% per year.”– “Core Earnings: New Data and Evidence”In “Core Earnings: New Data and Evidence”, Ethan Rouen and Charles C.Y. In this report, I leverage my Robo-Analyst technology and “novel dataset” to highlight a tech giant that is significantly more profitable than its earnings suggest. On a trailing twelve months (TTM) basis, QCOM had $2.1 billion (6% of total assets) in net non-recurring expenses. Below I’ll walk through the adjustments I made to QCOM’s 10-K that are used to calculate Core Earnings featured in the HBS paper. But Wait… There’s MoreIn addition to the adjustments made to calculate “Core Earnings” in the HBS paper, I identified one other significant adjustment.

Source: Forbes October 23, 2019 13:18 UTC