basic earnings per share

Also found in: Acronyms.

Earnings per Share

In a given fiscal year, a publicly-traded company's profit divided by the number of shares outstanding. This is considered the single most important aspect in determining a share's price and value, because the calculation of earnings per share shows the amount of money to which a shareholder would be entitled in the event of the company's liquidation. In general, earnings per share applies only to common shares. It is calculated thusly:

Earnings per share = (Net income - Preferred dividends) / Average shares outstanding.

basic earnings per share

Net income less preferred stock dividends during a given period, divided by the average number of shares of common stock outstanding during that period. Compare diluted earnings per share. See also dual presentation.
References in periodicals archive ?
24 basic earnings per share, for the same three-month period in 2012.
Reflecting those restructuring charges, Lenovo reported profit attributable to shareholders of US$43 million and basic earnings per share for the interim 2006/07 period of 0.
Basic earnings per share for the three months ended September 30, 2006 and 2005 were $0.
Reflecting that restructuring charge, Lenovo reported a loss attributable to shareholders of HK$903 million and basic earnings per share for the fourth quarter 2005/06 of (10.
Basic earnings per share in the fourth quarter of 2005 were $0.
OTC Pink Sheets:BGII) today announced that it expects to post full year revenue of between $4,700,000 and $4,900,000 and basic earnings per share of $0.
21st Century reduced its guidance for basic earnings per share from a range of $2.