earnings per share


abbreviation: EPS. In relation to a listed company, the earnings of the company for a period – that is, the profit of the company (consolidated profit after deducting minority interests if it is a parent company) after tax and after deducting preference dividends, but before taking into account extraordinary items – divided by the number of issued equity shares on which dividend will be paid for the period. If the figure for earnings per share is negative, that is, if there was a loss before taking account of extraordinary items, then it is called ‘loss per share’. Earnings per share is measured in pence per share. See also the entries for ‘fully diluted earnings per share’, ‘net basis of calculating earnings per share’ and ‘nil distribution basis of calculating earnings per share’.


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