Originally Posted by
buscappy
huh?
the "e" in eps is earnings. earnings are net income or profit. so eps are related, in some way, to eventual share of profit under our profit share scheme
not causal, but related. of course, eps is a metric. like ias is a metric of how fast the jet is sliding thru the air. sure, weight, pitch, thrust, drag, etc, etc, actually determine the speed of the slide thru the air. but ias is a good metric. as eps is a good metric of profits. stand by on the "s" number in eps. I'm reaching out to friends ( one a cfo and one a treasurer of fortune 100 co's) I'll get back. but the "s" in eps is susceptible to interpretation and manipulation. stand by
If you know the earnings and the revenue you can calculate the profit sharing.
If you know the EPS and the revenue you can NOT calculate the profit sharing unless I give you a share count.
Yes, of course, EPS are related to earnings that's a silly statement.
Yes, there are many variations in rules surrounding calculations of EPS, but for any SP500 corporation the differences between basic EPS or diluted EPS is so small as to not be viewable unless you take the calculation well beyond the 3rd or 4th decimal.
The point I am making and the one to which I responded "huh?" is you seemed to imply that EPS are some mysterious calculation involving an amalgam of Treasury shares, Preferred Shares, etc. They are not. They are a simple tool for comparing corporate results over time and industries. Furthermore, they are of little use when discussing UAL Pilot Profit Sharing.