bs, when diluted earnings are reported, they assume all convertibles which can have a dilutive effect have been converted. an in-the money warrant is considered exercised. thus the actual exercise will not be dilutive, because it has already been counted.
Dar 200 You are absolutely correct that the exercising of the Dec 31st warrants are non dilutive. There are 5.29m warrants which purchase, because of the split, 10.58m ADS (about 5 days average volume). At the present share price of $40.82 they are in the money and should be exercised. What we don't know is (a) how many of the warrants have already been exercised (b) how many warrant holders have already sold the underlying stock and (c) how many will be happy to hold stock after exercising. There is likely to be some selling on the warrant expiry but how material it will be is anyone's guess.