Earnings per share (EPS) - Financial definition
Financial acronyms
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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.