In a recent post we highlighted the ease with which analysts can game the earnings forecasts and actual results by focusing on operating earnings which exclude what the analysts argue are “one-time items”.

Now TPC has a post which reminds us that when we focus on GAAP, that is “as reported earnings”, they are down compared to the same quarter last year by 44% and by 68%, compared to the same quarter in 2007.  Yet, operating earnings are said to have beat “analysts estimates” about 70% of the time this quarter.  What are the odds that many of the items deemed “one time” by the analysts will reappear in GAAP earnings for subsequent quarters? We think the odds are high…