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    dmsaez's Avatar
    dmsaez Posts: 1, Reputation: 1
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    #1

    Mar 2, 2007, 09:09 PM
    Discontinued operations impact on earnings per share
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    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
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