Alkermes plc. Earnings Per Share Disclosure
12. EARNINGS PER SHARE
Basic earnings per ordinary share from continuing operations is calculated based upon net income from continuing operations available to holders of ordinary shares divided by the weighted average number of ordinary shares outstanding. Basic loss per ordinary share from discontinued operations is calculated based upon net loss from discontinued operations available to holders of ordinary shares, divided by the weighted average number of ordinary shares outstanding. For the calculation of diluted earnings (loss) per ordinary share from continuing operations and discontinuing operations, the Company utilizes the treasury stock method and adjusts the weighted average number of ordinary shares outstanding for the potential dilutive effect of outstanding ordinary share equivalents such as stock options and RSUs.
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Year Ended December 31, |
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(In thousands) |
2025 |
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2024 |
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2023 |
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Numerator: |
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Net income from continuing operations |
$ |
241,664 |
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|
$ |
372,138 |
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|
$ |
519,157 |
|
Net loss from discontinued operations |
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— |
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|
|
(5,068 |
) |
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|
(163,400 |
) |
Net income |
$ |
241,664 |
|
|
$ |
367,070 |
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|
$ |
355,757 |
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Denominator: |
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Weighted average number of ordinary shares outstanding |
|
164,703 |
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|
|
165,392 |
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|
|
166,223 |
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Effect of dilutive securities: |
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Stock options |
|
1,867 |
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|
|
1,377 |
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|
|
1,093 |
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Restricted stock unit awards |
|
2,173 |
|
|
|
2,429 |
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|
|
2,414 |
|
Dilutive ordinary share equivalents |
|
4,040 |
|
|
|
3,806 |
|
|
|
3,507 |
|
Shares used in calculating diluted earnings per ordinary share |
|
168,743 |
|
|
|
169,198 |
|
|
|
169,730 |
|
The following potential ordinary share equivalents were not included in the net income (loss) per share calculation because the effect would have been anti-dilutive:
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Year Ended December 31, |
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(In thousands) |
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2025 |
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2024 |
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2023 |
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Stock options |
|
|
9,468 |
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|
|
11,517 |
|
|
|
12,422 |
|
Restricted stock unit awards |
|
|
2,243 |
|
|
|
2,391 |
|
|
|
2,378 |
|
Total |
|
|
11,711 |
|
|
|
13,908 |
|
|
|
14,800 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2015 | Feb 25, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.