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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The resultant adjusted operating basic earnings per share was 5.3 cents excluding the exceptional gain.
It also would eliminate provisions allowing an entity to rebut the presumption that contracts with the option of settling in either cash or stock will be settled in stock and require that shares that will be issued upon conversion of a mandatorily convertible security be included in the weighted-average number of ordinary shares outstanding used in computing basic earnings per share from the date that conversion becomes mandatory.
Basic earnings per share rose by 34 per cent to 78.03c from 58.14c in 2002, while Anglo-Irish's total assets increased by 31 per cent to EUR25.5bn from EUR19.4bn.
Basic earnings per share before goodwill amortisation was 14.1p, with an interim dividend of 6p per share.
Excluding one-time items, Acxiom reported basic earnings per share of 17 cents.
Basic earnings per share for the quarter that ended Sept.
Following the lead of the IASC, the Board has tentatively concluded to replace primary earnings per share with basic earnings per share. The notion of common stock equivalents would no longer exist.
The insurer's basic earnings per share fell from 16.8p a year ago to 14.9p
Net income increased 17%; Net loans increased 24%; Deposits increased 24%; Total assets increased 27%; Basic earnings per share increased 10% (USD 0.57 vs.
Financial Highlights [pounds sterling]m unless stated Audited 12 months to 31 December 2018 Revenue 323.3 Operating Profit 18.9 Adjusted Operating Profit (2) 29.0 Profit before Tax 18.4 Basic Earnings per Share (p) 17.2p Adjusted Basic Earnings per Share (p) (3) 24.7p Net Cash 14.4 Dividend per share (p) 7.0p Adjusted Operating Cash flow (4) 45.6 [pounds sterling]m unless stated Audited 12 months to 31 December 2017 (restated (1)) Revenue 287.2 Operating Profit 17.0 Adjusted Operating Profit (2) 24.0 Profit before Tax 17.0 Basic Earnings per Share (p) 18.9p Adjusted Basic Earnings per Share (p) (3) 20.1p Net Cash 22.7 Dividend per share (p) 6.2p Adjusted Operating Cash flow (4) 14.2 * Revenues up 12.6% to [pounds sterling]323.3m (2017: [pounds sterling]287.2m)
Excluding the Westbound acquisition related expenses during the quarter of $365,000, basic earnings per share during the third quarter of 2018 would be $0.46 per basic share.

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