Earnings per Share (Diluted)
View All TermsEarnings per Share (eps) is the amount of earnings per outstanding share of the company™s stock. In calculating earnings per share, the dividends of preferred stocks need to subtracted from the total net income first. The formula of the calculation is
Earnings per Share (eps) = ({Net Income} - {Preferred Dividends})/{Shares Outstanding}
Companies also reported diluted shares in their financial reports. Diluted shares include the shares of convertibles or warrants outstanding.