Calcbench

Calcbench always loves to dive into the details of non-GAAP adjustments, and this week we have a fascinating — or maybe puzzling is the better word? — example from Keurig Dr. Pepper ($KDP).  Keurig filed its latest annual report on Feb. 22, and the top lines seem to look pretty good. Net sales up 5.4 percent to $14.8 billion, gross profit up 10.3 percent to $8.08 billion. Pretax income soared 60.4 percent, although that’s largely due to a legal settlement and asset impairments that hit Keurig in 2022 and weren’t on the books last year.  The earnings release, however, is where the puzzling part enters the picture.  In that earnings release , Keurig reports adjusted gross profit — with a $115 million upward adjustment attributed to “productivity.” See Figure 1, below, with the productivity line highlighted blue. That $115 million adjustment is 1.4 percent of the $8.08 gross profit number, close enough to materiality that some auditors will argue that it is. Either way, we...

Another week down, another analysis up from the Calcbench Earnings Tracker! With well more than 1,000 earnings reports in hand, we can now say that Q4 2023 looks impressive.  Our Earnings Tracker is a template we compiled using the world-famous Calcbench Excel Add-In, to pull financial disclosures automatically as companies file their latest earnings releases with the Securities and Exchange Commission.  Figure 1, below, tells the tale. It shows total data for more than 1,000 non-financial companies that have filed Q4 earnings as of Feb. 26.  Figure 2, below, is that same data converted into bar charts for easy visualization. So we have revenue up 3.24 percent from the year-earlier period, and net income up an impressive 13.8 percent. Moreover, cost of goods sold is actually lower than the year-earlier period by 0.65 percent — so everybody quietly panicking about those higher-than-expected CPI inflation numbers last week , perhaps you can take a breath.  Perhaps Jan...

Microchip giant Nvidia published its latest earnings release this week, and of course the results were gargantuan because everyone everywhere is buying Nvidia’s advanced chips for artificial intelligence. Today we wanted to dive into Nvidia’s segment disclosures, to see just how rapidly its AI business is eclipsing everything else the company does. Thankfully, NVidia offers precisely that level of detail in its Segment disclosures . The company reports two major segments: Compute & Networking, which is home to its AI business; and Graphics, harkening back to NVidia’s origins as a maker of chips for high-end video games. See Figure 1, below. The company has an Other category as well, which apparently reports no revenue but does report operating losses. OK, clearly the company’s AI division is going nowhere but up. To put that growth in perspective, we dumped all this data into a spreadsheet and turned it into a chart. Figure 2, below, compares revenue growth by segment for the la...