Savvy Trades and Investments

[researcher59]

IART reports a HUGE difference between GAAP and adjusted EPS. For Q1 GAAP EPS was a loss of (0.04) while adjusted EPS was $0.55.

Are the adjustments all legitimate ? I think not. Just taking a quick look, amortization of intangibles is a recurring real expense for acquired assets that have a limited market life. It's analogous to depreciation expense and should not be ignored. The cash outflow flow occurs at the time of acquisition, but the expense occurs as the remaining life of the asset diminishes. It's not a free ride !

And other expense like recurring EU regulatory charges shouldn't be adjusted out either ....

So in conclusion, the forward PE is MUCH higher when one gets less generous with the GAAP to non-GAAP adjustments. I'm not so generous with the adjustments and evidently the market isn't either.