diluted earnings per share


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Diluted Earnings per Share

The earnings per share of a publicly-traded company calculated on the assumption that all convertible securities were exercised. That is, instead of considering only common stock currently in existence, the diluted EPS assumes that all securities such as stock options, convertible bonds, and anything else that can be changed into common stock is actually changed. The diluted EPS is useful for common shareholders because it represents the earnings one would receive in the worst possible situation. Many companies report both the basic EPS and the diluted EPS. The actual EPS usually falls between the two. See also: Dual Presentation.

diluted earnings per share

An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of common stock. Net income is adjusted for any changes that would occur because of the conversions. Diluted earnings per share is a particularly effective method of presenting earnings-per-share data for companies with complex capital structures. Compare basic earnings per share. See also dual presentation.

Diluted earnings per share.

In addition to reporting earnings per share, corporations must report diluted earnings per share. This accounts for the possiblity that all outstanding warrants and stock options are exercised, and all convertible bonds and preferred shares are exchanged for common stock.

Diluted earnings actually report the smallest potential earnings per common share that a company could have based on its current earnings. In theory, at least, knowing the diluted earnings could influence how much you would be willing to pay for the stock.

References in periodicals archive ?
Second-quarter diluted earnings per share increased nearly 50 percent year-over-year; excluding special charges, second-quarter diluted earnings per share increased over 5 percent year-over-year.
Total year adjusted diluted earnings per share guidance increased to $2.10 - $2.20 per share.
Net income for the quarter rose from $23.8 million to $24.2 million, yielding an eight-cent increase in diluted earnings per share from 46 cents to 54 cents (also accounting for a two-for-one stock split in December).
15 as amended and interpreted), require public enterprises with complex capital structures (includes securities that could have a dilutive effect on earnings per share) to present primary earnings per share (net income divided by common stock and common stock equivalent shares outstanding) as well as fully diluted earnings per share.
The FASB proposal will consider the IASC's requirement that basic earnings per share (net income/weighted average of common stock outstanding) and fully diluted earnings per share be presented.
The company expects diluted earnings per share to range from $5.56 to $5.71 and is reiterating its outlook for adjusted diluted earnings per share, which excludes any first quarter and future transaction and other costs, of $5.75 to $5.90, or $5.81 to $5.96 adjusted for the impact of the 1% currency headwind.
(OTC: FCBI), the parent company for Frederick County Bank (FCB), has reported net income of USD712,000 and diluted earnings per share of USD0.45 for the quarter ended December 31, 2018, as compared to net income of USD341,000 and diluted earnings per share of USD0.22 registered for the fourth quarter of 2017.
reported revenues of $86.8 million, net income of $11.2 million and diluted earnings per share of $0.43 for the quarter ended September 30, 2018.
Diluted earnings per share for the quarter was USD2.19 compared to diluted earnings per share of USD1.76 in fourth-quarter 2013.
announced today consolidated net earnings ( net earnings ) from continuing operations of $91-million ($0.63 diluted earnings per share) for the third quarter of 2014, compared with net earnings from continuing operations of $80-million in the third quarter of 2013 ($0.54 diluted earnings per share).
For the three months ended September 30, 2010, diluted earnings per share were USD0.07, as compared to USD0.09 diluted earnings per share for the three months ended September 30, 2009.
The company also reported cash diluted earnings per share for the year of $1.17 compared with 55 cents for the same period in 2008.