Uniform Accounting Highlights FRED’s Adjusted EPS will rebound quickly, contrary to market expectations at discounted valuations

• FRED’s traditional EPS is materially distorted by GAAP treatment of operating leases

• After making the appropriate UAFRS adjustments, earnings were actually positive in the four quarters ended Q3 2016, not negative, and although EPS’ was negative in the last four quarters, it is expected to rebound to positive levels far more quickly than as-reported EPS

• While current valuations offer a floor to equity prices, the successful integration of RAD stores could push earnings further into positive territory, which could lead to equity upside

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Submitted April 10, 2017 at 09:08PM by Valens_Research http://ift.tt/2ol8ghv