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I'm fairly new to the world of finance and I'm learning how to analyze financial statements of publicly traded companies. I came across the latest quarterly report (Q1 2021) of TopBuild Corp. (BLD), you can find it here (pick the "Quarterly" tab): https://www.tradingview.com/symbols/NYSE-BLD/financials-income-statement/ (screenshot). What I don't understand is how every financial website tells that earnings have beaten the estimates (estimated EPS was 1.95, actual one is reported as 2.02). But I analyzed the report and saw that there was a drop in net income from 70.76M in Q4 2020 to 59.84M‬ in Q1 2021.‬ The new calculated basic EPS should therefore ‪be 1.82‬ (−15.52%). So where does that "2.02" come from?

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$2.02 Earnings Per Share is the result of a fancy word “adjusted” applied to earnings. Page 19 of the earnings deck reconciles reported earnings to adjusted earnings, it seems like the major contributor was a loss related to rolling over some debt; I’m sure it’s expanded on somewhere in the deck but you can unwind that part.

You can’t always trust other people’s data, so you were smart to question the “beat.” A one time charge related to restructuring debt is probably reasonable to consider the adjusted number because the business hasn’t deteriorated, there was just a big charge last quarter.

The deck was linked from the BLD financial results site.

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