Diluted EPS
Net income per share after counting the extra shares that options, convertibles and similar instruments could create.
Earnings per share is net income attributable to common shareholders divided by the number of shares. Diluted EPS uses a larger share count that assumes in-the-money options, warrants and convertible securities are exercised or converted. It gives a more conservative figure than basic EPS when such instruments exist.
On our site, the headline EPS is shown as diluted unless labeled otherwise, with the consensus beside it. Adjusted EPS can differ from GAAP diluted EPS, so check which basis a comparison uses.
Traders care because EPS drives the earnings multiple and the beat or miss against consensus. A large gap between basic and diluted EPS can signal heavy dilution.
Worked example (illustrative numbers, not real data): net income is 500 million dollars on 100 million basic shares, so basic EPS is 5.00. Instruments that would add 5 million shares bring the diluted count to 105 million, giving diluted EPS of about 4.76.