normalized earnings

Normalized earnings

Earnings that have been adjusted in order to take into account the effect of cycles in the economy.

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.

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.
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 %).
Symrise achieves strong revenue growth of 7.4 % in the first half of the year
* Earnings per share up 24% and normalized earnings per share up 12%
Capgemini (EPA: CAP)
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.
Newell Brands announces intention to retain Rubbermaid Commercial Products unit
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.
AltaGas Announces Second Quarter 2019 Results
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.
Capital Power Corporation generates net cash flows of $65 million
Normalized earnings attributable to common shareholders in the second quarter of 2016, after adjusting for one-time items and fair value adjustments, were $29 million or $0.30 per share compared with $10 million or $0.10 per share in the second quarter of 2015.
Canada : Capital Power reports second quarter 2016 results and announces a 6.8% dividend increase for its common shares
Newell Rubbermaid said the acquisition is expected to be accretive to normalized earnings and operating margin in 2016.
Newell Rubbermaid Closes USD 600m Acquisition of US Glue Maker Elmer's
Or, as the authors put it in simple numbers: "We believe it is the height of folly to assume that a market trading at 45 times normalized earnings, as the S&P 500 was in 2000, can achieve similar returns to one trading at seven times, as it was in 1982."
New approach to avoiding retirement ruin: GMO white paper seeks to solve problems in the sustainability of retirement portfolios
"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.
Air New Zealand soars on strong earnings outlook
He liked to use normalized earnings to adjust for outliers and averages of five or more years--preferably seven or 10 years.
"Quantitative Value--A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors."
The International Glossary of Business Valuation Terms (SSVS1, Appendix B) defines "normalized earnings" as "...
Compilation reports for valuation engagements? Q&A resolves SSARSS and SSVS confusion
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.
What is a Company Worth? By Business Brokerage Press
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