Financial

normalized earnings

Normalized earnings

Earnings that have been adjusted in order to take into account the effect of cycles in the economy.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Normalized Earnings

1. Earnings for a company not including nonrecurring charges and gains. A one-time charge or gain that deeply affects a company's profits or losses for a given period of time might make it appear more or less healthy than it really is; normalized earnings are an indication of a company's true financial health.

2. Earnings that account for seasonal or economic cycles. See also: Seasonally-adjusted.
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normalized earnings

Past or forecasted earnings that have been adjusted for cyclical variations. Earnings are generally normalized by using a moving average of earnings per share over a number of successive periods.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive
Normalized earnings per share reached EUR 1.14, after EUR 1.10 in the first half of the previous year (+4 %).
The retention of Rubbermaid Commercial Products will be accretive to operating margins, normalized earnings per share and operating cash flow in 2020 and future years.
The 2019 investment plan remains unchanged and includes prudent capital allocation of approximately $1.3 billion to projects with strong risk-adjusted returns, near-term contributions to normalized FFO per share and normalized earnings per share (EPS), and secure commercial underpinnings.
Normalized earnings attributable to common shareholders in the third quarter of 2018, after adjusting for non-recurring items and fair value adjustments, were $36 million or $0.35 per share compared with $29 million or $0.28 per share in the third quarter of 2017.
Newell Rubbermaid said the acquisition is expected to be accretive to normalized earnings and operating margin in 2016.
"Based on current market conditions and the trading environment, Air New Zealand expects FY13 normalized earnings before taxation to be in the range of NZ$235-260 million (US$198-220 million)," it said.
The International Glossary of Business Valuation Terms (SSVS1, Appendix B) defines "normalized earnings" as "...
This could be due to a variety of factors including emotional attachment to the business, unwillingness to accept the impact of the risk factors of the business, outside influence from previous market conditions, incorrect conclusion of normalized earnings, comparable transactions, etc.
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