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View Full Version : Discontinued operations impact on earnings per share


dmsaez
Mar 2, 2007, 09:09 PM
I have looked all over but I can not find what the discontinued operations impact on earnings per share is?? HELP!

Can anyone point me in the right direction?:confused:

CaptainForest
Mar 2, 2007, 11:33 PM
When you discontinue a business, it is either at a loss or a gain. That will either decrease or increase the EPS. Most likely when you discontinue a business, it is at a loss.

EXAMPLE:

Income Statement Presentation of EPS Components Earnings per share:

Income from continuing operations... $4.00
Loss from discontinued operations, net of tax... (.60)
Extraordinary gain, net of tax... 1.00
Net Income... $4.40