What is EPS (earnings per share)?

EPS (earnings per share) is a company's profit divided by its number of shares outstanding.

Companies report EPS every quarter. Analysts publish EPS estimates beforehand, and stocks often move on whether the result 'beat' or 'missed' those estimates.

Why it matters to you

EPS is the 'E' in the P/E ratio and the number most earnings headlines are about.

FAQ

What is EPS?

EPS (earnings per share) is a company's profit divided by its number of shares outstanding.

What does it mean when a company beats EPS?

Its reported earnings per share came in above the average analyst estimate.

Related terms

Earnings · P/E ratio · Earnings season

All plain-English definitions → · Educational only, not investment advice.

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