I realize that the question I ask is very related to accounting but there is no active stackexchange website for this. The question is related to Analysts' recommendation and Earnings Surprise.
Look at the chart of reported EPS and EPS consensus (from analysts' predictions) for the company Biogen Inc on Nasdaq here and the 2017Q3 income statement here. I am also posting snapshots because the info will change with time.
We can see that the actual reported Q3 according to the graph is above 6. When you observe the different reported EPS values in the IS:
- Earnings Per Share Basic Net: 5.80
- Earnings Per Share Diluted Net: 5.79
- EPS Diluted Before Nonrecurring: 6.31
From this information I assume that what is taken into account in the Nasdaq website is the EPS Diluted Before Nonrecurring.
I have several questions here:
- Is this 'version' of EPS the 'default' for which predictions by the analysts are made and has this paradigm changed over the course of history?
- Are there cases (and/or for what type of companies) this EPS value could be very significantly different from the basic EPS? As far as I understand this could happen when the profit/loss from non-accruing items is too big. Could possibly result even in 'EPS basic' and 'EPS before nonreaccuring' being with different signs? I could use some examples.