normalized earnings

Normalized earnings

Earnings that have been adjusted in order to take into account the effect of cycles in the economy.

Normalized Earnings

1. Earnings for a company not including nonrecurring charges and gains. A one-time charge or gain that deeply affects a company's profits or losses for a given period of time might make it appear more or less healthy than it really is; normalized earnings are an indication of a company's true financial health.

2. Earnings that account for seasonal or economic cycles. See also: Seasonally-adjusted.

normalized earnings

Past or forecasted earnings that have been adjusted for cyclical variations. Earnings are generally normalized by using a moving average of earnings per share over a number of successive periods.