Adjusted EPS

Adjusted EPS means earnings per share after removing certain items a company considers unusual or not part of normal operations. In simple terms, adjusted EPS is a cleaned-up version of EPS. Adjusted EPS is important because investors often use it to understand ongoing business performance. However, they must check what items were excluded because adjustments can make results look better. For example, a company may exclude restructuring costs, one-time legal expenses, or acquisition-related charges from adjusted EPS. Adjusted EPS is not the same as reported EPS. Reported EPS follows accounting rules, while adjusted EPS depends on company-defined adjustments.