Diluted Normalized Earnings Per Share

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Dictionary Says

Definition of 'Diluted Normalized Earnings Per Share'

A company's profit less one-time earnings, divided by both outstanding common stock and stock owed if convertible securities were to be exercised. Diluted normalized EPS is different than regular earnings per share (EPS) because it takes into account options, dividing normalized profit by more shares. Diluted normalized EPS is more likely to be lower than regular EPS. The closer it is to regular EPS, the more stable a company's ongoing operations are. The greater the difference, the greater the risk of share dilution and unsustainable ongoing operations. Normalized earnings are earnings that have been adjusted by a company to omit irregular expenses against earnings.
Investopedia Says

Investopedia explains 'Diluted Normalized Earnings Per Share'

Investors pay attention to diluted normalized EPS because it gives a clearer picture of the health of a company's ongoing operations. Because it uses normalized earnings, the sale of a division is discounted and can't temporarily inflate profitability. Diluted normalized EPS also pinpoints a company with a large number of convertible securities, as these options can potentially reduce EPS and dividend payouts by increasing the number of shares on the market.
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'Diluted Normalized Earnings Per Share'

  • The 5 Types Of Earnings Per Share

    http://www.investopedia.com/articles/analyst/091901.asp
    ... EPS is calculated based upon normalized, or ongoing ... flow (not EBITDA) divided by
    diluted shares outstanding. ... are a good representation of a company's earnings. ...

  • Discerning JPMorgan's Normalized Earnings Potential

    http://stocks.investopedia.com/stock-analysis/2010/Discerning-JPMorgans-Normalized-Earnings-Potential--JPM-BAC-C-GS-MS0125.aspx
    ... traditional banking operations, but the share price multiple off normalized earnings
    is compelling. ... $3.3 billion in net income or 74 cents per diluted share ...

  • It Pays To Wait For UPS To Recover

    http://stocks.investopedia.com/stock-analysis/2009/It-Pays-To-Wait-For-UPS-To-Recover-UPS-FDX0902.aspx
    ... The end result was a 48.2% plummet in diluted earnings to 44 ... in the business cycle
    and report earnings normalized earnings in the ballpark of $3 per share. ...

  • Amgen's New Double-Play Drug

    http://stocks.investopedia.com/stock-analysis/2010/Amgens-New-Double-Play-Drug-AMGN-MRK-GSK-LLY-NVS0608.aspx
    ... Amgen The Investment Amgen, whose earnings growth has been described as "tepid,"
    and "flagging," had annual diluted normalized earnings per share of $4.16 in ...

  • The Bank Of America Enigma

    http://stocks.investopedia.com/stock-analysis/2011/The-Bank-Of-America-Enigma-BAC-C-JPM-USB-STD0126.aspx
    ... said net income was 87 cents per diluted share while return ... first book value figure
    suggests earnings of just over $2 per share under normalized conditions and ...

  • Bank Of America Still A Long Way From Normal

    http://stocks.investopedia.com/stock-analysis/2011/Bank-Of-America-Still-A-Long-Way-From-Normal-BAC-SCHW-PJC-RJ-C-RF0425.aspx
    ... to $1.7 billion, or 17 cents per diluted share, to fall ... value ended the quarter at
    just over $21 per share. ... between $2 and $3 in normalized earnings as returns ...

  • Masco Controls What It Can

    http://stocks.investopedia.com/stock-analysis/2010/Masco-Controls-What-It-Can-MAS-LOW-FO-SWK-WY0729.aspx
    ... Full-year earnings are currently projected to reach 29 cents ... just over $1.50 in free
    cash flow per diluted share. ... fundamentals return to more normalized levels ...

  • Four Stocks With Major Ties To Japan

    http://stocks.investopedia.com/stock-analysis/2011/Five-Stocks-With-Major-Ties-To-Japan-COH-AFL-OMG-VOLC-LBTYA-BLD-STAA0328.aspx
    ... it's still been falling short of earnings estimates, this ... out a profit of 4 cents
    per share in the ... banner year, having increased its diluted normalized EPS to ...

  • Buy Into Long-Term Care

    http://stocks.investopedia.com/stock-analysis/2009/Buy-Into-Long-Term-Care-SUNH-SKH-BKD-KND0105.aspx
    ... ago. Normalized, diluted EPS jumped to 19 cents from 15 cents. That ... year.
    Yet, the company has delivered solid earnings this year. ...

  • JPMorgan Chase Aims for Steady Profit Growth

    http://stocks.investopedia.com/stock-analysis/2011/JPMorgan-Chase-Aims-for-Steady-Profit-Growth-JPM-BAC-C-RJF-GS0719.aspx
    ... Earnings came in at $1.27 per diluted share, or 16 ... Based on the current earnings
    projections for the year ... 2011 marking a return to more normalized profit levels ...

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