what is the difference between pro-forma eps and gaap eps?

Question

when reading analyst reports, they quote both pro-forma and gaap eps.

Answer 1

Do you want a cynical answer? Pro-forma was invented to make the earnings appear better than they really are. They are manufactured earnings by devious accounts and ceos. Pro-forma earning generally exclude non-recurring items such as a write off of good will and depreciation, sometimes even such things as taxes and interest expenses. Some industries such as telecommunications and cable TV love to report pro-forma results because they show a profit when in fact there was none.

Answer 2

Pro-forma reports are usually projections, while GAAP reports use historical values.

Answer 3

GAAP is generally accepted accounting principals, pro-forma usually means that it is the way management wants you to see their accounting rather than how it should be accounted for.