Corporate Earnings Increasingly Show Signs Of ‘Viagra’ Use

Reporting corporate earnings is becoming somewhat of a high-wire act where the tight-rope walker not only has to balance their way to the other side, but do so juggling five balls blindfolded. This circus side-show was on display last April when Boston Scientific Chief Financial Officer Dan Brennan, in one sitting, pulled out the word “adjusted” to describe the firm’s financial results on 34 separate occasions. That caveat was uttered from his mouth twice every minute on average, a recent Grant’s Interest Rate Observer piece notes.

Like government debt and pension plans, pro forma corporate earnings increasingly push expenses forward while booking all revenue in the present

Why are...