What is an Earnings Recast?
An earnings recast, also called an financial statements.restatement, is the act of disclosing amended
How Does an Earnings Recast Work?
Let's assume Company XYZ sells its pharmaceutical division to Company ABC. The pharmaceutical division was a significant generator of
After the sale, it an earnings recast by disclosing the last five years of -- with the pharmaceutical division excluded.
Why Does an Earnings Recast Matter?
Earnings recasts can be corrections inhey can also help investors get a comparative sense of how a company is performing without a recently divested , with a change in method, or with some other significant change in operations.