This is how you are supposed to report stock based compensation. This paragraph comes from Ultra Petroleum's 10Q. It is an expense. It is a non cash expense but an expense. You don't remove the expense and report non GAAP earnings. There is no such thing. It is a ridiculous charade designed to hoodwink the naive and the careless. It is shocking to me that the outfits like Cheat Sheet and even Zacks state EPS = and then they use the imaginary number.
Half these stock touting organizations are not even curated. They are just programs that scrape reporting company PR's.
"Share-Based Payment Arrangements. The Company applies FASB ASC Topic 718, Compensation – Stock Compensation (“FASB ASC 718”), which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, including employee stock options,
based on estimated fair values. Share-based compensation expense recognized for the three months ended March 31, 2013 and 2012 was $3.0 million and $2.5 million, respectively. See Note 4 for additional information."