GE and IBM earnings reports have something unusual in common

General Electric Co. and International Business Machines Corp. have something in common that makes them rare among companies that report quarterly results: both companies' financial statements list diluted earnings per share above basic EPS, and they have for years. Of the 30 components of the Dow Jones Industrial Average , Walt Disney Co. is the only other company that reports EPS in that way. Basic EPS is calculated using the weighted-average number of common shares outstanding for the period, while diluted EPS takes into account all dilutive potential common shares, such as exercised options. Therefore, diluted EPS tends to be less than basic EPS. While it's not wrong to report diluted first, it's usual, like listing most-recent results to the right of year-ago results. An unknowing investor might at first glance think EPS is a bit larger than the actual bottomline number. "We present EPS in a way that we think is most representative of the company for investors," a GE spokesperson told MarketWatch. IBM was not immediately available for comment. GE's stock fell 1.9% in midday trade Friday, after reporting fourth-quarter revenue that missed expectations, while IBM's stock gained 1.6% after reporting better-than-expected results. GE shares have rallied 9.3% over the past 12 months, while IBM shares have run up 39% and the Dow has climbed 26%.

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