Earnings per Share ("EPS")

9 Months Ended

Jun. 30, 2024

Earnings per Share (“EPS”)

Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding, less unvested restricted stock for the period. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding and dilutive potential common shares for the period. Potential common shares include the weighted-average dilutive effects of stock-based awards and shares underlying our Convertible Senior Notes (the "Convertible Notes").

For the third quarter and first nine months of fiscal 2024, our Convertible Notes, described in Note 15, "Long-Term Debt", had a dilution impact on the dilutive potential common shares, which was calculated using the if-converted method. The dilution impact was due to the price of our common stock exceeding the conversion price. The related capped call transactions (the "Capped Call Transactions") were excluded from the calculation of dilutive potential common shares as their effect is anti-dilutive. For the third quarters and first nine months of fiscal 2024 and 2023, no options were excluded from the calculation of dilutive potential common shares.

The following table presents the number of weighted-average shares used to compute basic and diluted EPS (in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023

Net income attributable to Tetra Tech	$	85,810	$	60,235	$	237,228	$	219,771

Weighted-average common shares outstanding – basic	53,515		53,231		53,451		53,188
Effect of dilutive stock options and unvested restricted stock	433		422		415		427
Shares issuable assuming conversion of convertible notes	104		—		35		—
Weighted-average common shares outstanding – diluted	54,052		53,653		53,901		53,615

Earnings per share attributable to Tetra Tech:
Basic	$	1.60	$	1.13	$	4.44	$	4.13
Diluted	$	1.59	$	1.12	$	4.40	$	4.10