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Earnings per share  (EPS) - Financial definition

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Translations:      FR  bénéfice par action (n.m.)     ES  beneficio por acción (n.m.)     DE  Gewinn pro Aktie (n.m.) 

Concise definition of the term earnings per share

Earnings per share is the portion of net income earned per outstanding share of common stock.

Comprehensive definition of the term earnings per share

It is calculated by subtracting dividends paid for preferred stock from a company's net income and then dividing the result by the average number of outstanding shares.
EPS is an indicator of a company's profitability. Companies usually report it on a quarterly or yearly basis.

Additional information related to this definition

Definitions of related terms

Dividend  •  Preferred stock  •  Share

Formula related to this definition

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