EPS is just an indication of how earnings can be distributed over shares. It doesn't get paid out though - that's what a dividend is. Much corporate profit is retained by the corporation for further research and development, rainy day funds, etc. The board decides on dividend payments, which can be zero even in a profitable company.

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Yes

getting a point

Hi guys plz help !!!!!!!

What is EPS ?? I just can't get it im confused i know its the profit minus the preferred dividends divided by the number of shares,

For example: lets say company ABC earned 25 million last year and it paid 1 million to the preferred dividends and has 15 million shares outstanding the EPS would be $1.6 (25 m - 1 m /15 m) if that's correct.

So does that mean the stock holder will earn $1.6 dollar per share ???????