Continuing and Discontinued Diluted EPS
Per-share earnings split using a fully diluted share count
Continuing and Discontinued Diluted EPS separates Diluted Earnings Per Share into continuing and discontinued components, while also reflecting potential dilution from options, convertibles, and other instruments. It’s the more conservative version of the continuing/discontinued EPS breakdown.
What Changes vs Basic EPS
The continuing/discontinued split concept is the same as Basic EPS. The key difference is the denominator: diluted EPS assumes certain securities convert into common shares, increasing the share count and typically lowering EPS.
When Dilution Is Excluded
Anti-dilutive instruments
If including a potential share would increase EPS (or reduce a loss per share), it is anti-dilutive and is excluded from diluted EPS.
Key Takeaways
This metric splits diluted EPS into continuing and discontinued pieces.
It provides a more conservative view by incorporating potential dilution.
It is typically preferred over basic EPS for comparisons and valuation.
Continuing and Discontinued Diluted EPS
Per-share earnings split using a fully diluted share count
Continuing and Discontinued Diluted EPS separates Diluted Earnings Per Share into continuing and discontinued components, while also reflecting potential dilution from options, convertibles, and other instruments. It’s the more conservative version of the continuing/discontinued EPS breakdown.
Table of Contents
What Changes vs Basic EPS
The continuing/discontinued split concept is the same as Basic EPS. The key difference is the denominator: diluted EPS assumes certain securities convert into common shares, increasing the share count and typically lowering EPS.
When Dilution Is Excluded
Anti-dilutive instruments
If including a potential share would increase EPS (or reduce a loss per share), it is anti-dilutive and is excluded from diluted EPS.
Key Takeaways
This metric splits diluted EPS into continuing and discontinued pieces.
It provides a more conservative view by incorporating potential dilution.
It is typically preferred over basic EPS for comparisons and valuation.
Related Terms
Apply This Knowledge
Ready to put Continuing and Discontinued Diluted EPS into practice? Use our tools to analyze your portfolio and explore market opportunities.
This content is also available on our main website for public access.