Earnings per share (EPS) is a financial metric that measures the amount of net income earned per share of outstanding common stock. It is calculated by dividing the company's net income by the number of outstanding shares of common stock.

EPS is an important metric for investors as it provides a measure of a company's profitability on a per-share basis. It is used to evaluate a company's financial performance and is often used as a basis for determining the value of a company's stock.

The income statement is the financial statement that provides information on a company's revenue, expenses, and net income. EPS is typically reported on the income statement as a separate line item, along with other key financial metrics such as revenue, gross profit, and operating income.

EPS can be calculated using two methods: basic EPS and diluted EPS. Basic EPS is calculated by dividing the company's net income by the number of outstanding shares of common stock. Diluted EPS takes into account the potential dilution of outstanding shares due to the conversion of convertible securities, such as stock options or convertible bonds, into common stock.

Investors typically pay close attention to a company's EPS growth rate over time, as well as its EPS relative to industry peers. A company with a higher EPS than its peers is generally considered more profitable and may be more attractive to investors.