DEFINITION of 'Primary Earnings Per Share (EPS)'
One of two methods for categorizing shares outstanding. The other method is fully diluted earnings per share (EPS). The term "basic EPS" is more commonly used instead of "primary EPS." Basic EPS is the simpler method to categorize outstanding shares, as it uses the number of shares currently available for trading. To calculate basic EPS, divide net income by the number of shares outstanding.
BREAKING DOWN 'Primary Earnings Per Share (EPS)'
Diluted EPS is more complicated to compute, but it is considered more conservative because it takes into account all the outstanding convertible shares, warrants and options that could potentially be converted to shares that are able to be traded. If none of these financial instruments are outstanding, diluted EPS and primary EPS will be equal.
EPS can be calculated in many different ways depending on the accounting methods and assumptions the company uses; investors taking EPS into account in any decisionmaking process should understand how the EPS figure they are using was calculated.

Basic Earnings Per Share
A rough measurement of the amount of a company's profit that ... 
Earnings Per Share  EPS
The portion of a company's profit allocated to each outstanding ... 
Diluted Earnings Per Share  Diluted ...
Diluted Earnings Per Share (or Diluted EPS) is a performance ... 
Cash Earnings Per Share  Cash ...
A measure of financial performance that looks at the cash flow ... 
Diluted Normalized Earnings Per ...
A company's profit less onetime earnings, divided by both outstanding ... 
Interim Earnings Per Share
A measure of earnings calculated at a specified time, shorter ...

Markets
The 5 Types Of Earnings Per Share
A look at the five varieties of EPS and what each represents can help an investor determine whether a company is a good value, or not. 
Fundamental Analysis
Assess Shareholder Wealth With EPS
Find out if management is doing its job of creating profit for investors. 
Forex Education
The Dangers Of Share Dilution
Investors need to be aware of the existence of dilutive securities and how they can affect existing shareholders. 
Professionals
Dilutive Securities
CFA Level 1  Dilutive Securities. This topic explains how dilutive securities affect shares outstanding. Shows how to determine if a security is dilutive or antidilutive. 
Fundamental Analysis
Calculating Basic Earnings Per Share
Basics earnings per share measures the amount of net income earned per share of outstanding stock. 
Economics
The 5 Types Of Earnings Per Share
Understanding the many varieties of earnings per share will help investors make informed decisions. 
Professionals
Dilution
Dilution can drastically impact the value of your portfolio. 
Professionals
Basic Earnings Per Share
CFA Level 1  Basic Earnings Per Share. Learn about earnings per share and how it relates to simple and complex capital structures. Includes the formula and interpretation of EPS. 
Forex Education
Earnings Per Share
Investing is a complex and often daunting experience, these equations are actually quite simple. 
Professionals
Business and Financial Risk
CFA Level 1  Business and Financial Risk. Examine two more types of capital budgeting risk. Learn how business and financial risk relate to a company's leverage.

What is the difference between earnings per share (EPS) and diluted EPS?
Learn about EPS and diluted EPS, what they measure, and the difference between the two. Read Answer >> 
What does it signify about a company if there is a large difference between its EPS ...
Learn more about basic earnings per share and diluted earnings per share, what the ratios measure and what a large discrepancy ... Read Answer >> 
What is the formula for calculating earnings per share (EPS)?
Learn why earnings per share (EPS) is often considered to be one of the most important variables in determining a stock’s ... Read Answer >> 
Why is a company's diluted EPS always lower than its simple EPS?
Learn about diluted and basic earnings per share and why a company's diluted earnings per share is usually lower than its ... Read Answer >> 
What are the best uses for trailing EPS, current EPS and forward EPS?
The earnings per share (EPS) indicator has three basic types that can alert you to past, present and future health of a company. Read Answer >> 
What's the difference between basic shares and fully diluted shares?
Find out more about basic outstanding shares, fully diluted shares, the difference between the calculation of shares and ... Read Answer >>