Earning Per Share (EPS) is a formula in finance to find a company’s ability to produce net profits for common shareholders. It is calculated by dividing total net earnings ( for common shareholders) by the average outstanding shares over a certain period of time.
Thus if the EPS indicates positive, negative low and high results than accordingly, it signals towards the profitability, negativity financial strength of the company.

You can calculate Earnings per share in two ways:

EPS = (Net Income – Preferred Dividends) / End of period Shares Outstanding

EPS = (Net Income – Preferred Dividends) / Weighted Average Shares Outstanding