Complex Event Analysis - Report

Complex Event Analysis - REPORT

Supporting narratives:

• challenge (Read more)
• "Unfortunately, it appears that the pandemic is more like the 'new normal,'and may impact operations in future periods even more significantly than it did during the first quarter."
  When AT&T Inc US:T posted first-quarter results in late April, it disclosed in the second line of its release that it saw adjusted earnings per share "of $0.84 ($0.89 without COVID-19 impact)." Later in its release, AT&T said it "did not adjust for COVID-19 costs of about $0.05 in the quarter" since the company expected the costs to be "short term."
  The company did not break down the drivers of that earnings impact in its release, but provided some more detail in a supplemental investor-briefing file
• High Level Abstractions:
• (costs,earnings)
• (covid-19,earnings)
• (drivers,earnings)
• (earnings,first-quarter)

• challenge (Read more)
• When the company filed its initial IPO documents in late 2018, the SEC took issue with some of the non-GAAP metrics in a series of comment letters.
  The company also reports adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, which is already an adjusted number.
• High Level Abstractions:
• (earnings,taxes)
• (earnings,interest)

• WIP (Read more)
• COVID-19 is leading to new non-GAAP metrics.and could prompt companies to dump all sorts of costs into periods affected by the crisis
  The practice of adjusting away COVID-19 impacts from financial metrics has been the subject of jokes on Twitter, including by those who designed coffee mugs to satirize the idea of earnings before interest, taxes, depreciation, amortization, and coronavirus, dubbed EBITDAC.
  The COVID-19 outbreak has brought out some creative accounting at companies, as executives attempt to gauge the impact of the pandemic on their businesses and how they would have performed if the crisis hadn't all but shut the economy down.
  Before companies began reporting first-quarter earnings, Twitter users joked that the outbreak would prompt new non-standard metrics that could be summarized as "earnings before COVID-19," or EBITDAC, and they even created a series of coffee mugs that satirized the concept
• High Level Abstractions:
• (costs,earnings)
• (earnings,non-standard)
• (covid-19,earnings)
• (earnings,taxes)
• (earnings,twitter)
• (earnings,interest)
• (earnings,first-quarter)
• (earnings,outbreak)

• WIP (Read more)
• The company increased its adjusted net revenue by $19 million to add back "payments for financial assistance to drivers personally impacted by COVID-19."
  It increased adjusted Ebitda by $24 million to remove those relief payments to drivers along with the costs of personal protective equipment given to drivers.
  Uber did not respond to a request for comment
• High Level Abstractions:
• (costs,earnings)
• (covid-19,earnings)
• (drivers,earnings)
• (earnings,revenue)

• WIP (Read more)
• Indeed, some companies chose to post earnings metrics that removed the pandemic's impact.
  "People will get creative telling their story and our message is to be cautious of the creativity," said Sandy Peters, the head of global financial reporting policy at the CFA Institute in New York.
  Uber Technologies Inc US:UBER, for example, has always reported a range of non-GAAP measures, or those that do not comply with Generally Accepted Accounting Principles (GAAP), the U.S. Companies are allowed to supplement reporting with non-GAAP metrics, which they argue help provide insight into their underlying business, but they must lead with GAAP and offer a reconciliation of the two.
  Uber's non-standard metrics include adjusted net revenue, which the company says is needed because its drivers are its customers, and not ride-hailing passengers.
• High Level Abstractions:
• (drivers,earnings)

• WIP (Read more)
• Indeed, some companies chose to post earnings metrics that removed the pandemic's impact.
  "People will get creative telling their story and our message is to be cautious of the creativity," said Sandy Peters, the head of global financial reporting policy at the CFA Institute in New York.
  Uber Technologies Inc US:UBER, for example, has always reported a range of non-GAAP measures, or those that do not comply with Generally Accepted Accounting Principles (GAAP), the U.S. Companies are allowed to supplement reporting with non-GAAP metrics, which they argue help provide insight into their underlying business, but they must lead with GAAP and offer a reconciliation of the two.
  Uber's non-standard metrics include adjusted net revenue, which the company says is needed because its drivers are its customers, and not ride-hailing passengers
• High Level Abstractions:
• (earnings,global)
• (earnings,non-standard)
• (earnings,revenue)

• WIP (Read more)
• In its earnings report, it said that the exclusion of these metrics from the adjusted numbers was "useful" because it lets investors "assess the impact of these response initiatives on our results of operations."
  There are questions, however, about the validity of adjusting away business activities related to a global health crisis when it's unclear how long the pandemic will crimp Uber's business.
  Then there's networking company Infinera Corp
• High Level Abstractions:
• (earnings,global)

Target rule match count: 11.0 Challenge: 0.13 Momentum: 0.00 WIP: 0.37