Earnings per Share (eps) is the amount of earnings per outstanding share of the companys 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)/Total Shares Outstanding
Companies also reported diluted shares in their financial reports. Diluted shares include the shares of convertibles or warrants outstanding.