Earnings Per Share (EPS)

RECENT NEWS
newratings.com  5 hrs ago  Comment 
WASHINGTON (dpa-AFX) - ConAgra Foods Inc. (CAG) reported a net income attributable to the company for the fourth quarter ended May 29, 2016 that declined 43.8 percent from last year. Adjusted earnings per share from continuing operations decreased...
newratings.com  6 hrs ago  Comment 
WASHINGTON (dpa-AFX) - McCormick & Company, Incorporated (MKC) announced, excluding the impact of special charges, it has greater confidence in achieving the higher end of its projected growth range for sales and earnings per share for the 2016...
SeekingAlpha  Jun 29  Comment 
Benzinga  Jun 28  Comment 
EPS $0.49 vs $0.39 est, up 96 percent YoY Sales $3.7B vs $3.68B est, up 2.8 percent YoY Carnival authorizes add’l $1B Share Repurchase Guides Q3 EPS of $1.83-$1.98 vs $1.98 est Narrows FY 2017 adjusted EPS forecast to...
The Economic Times  Jun 24  Comment 
While some experts believe it is time for long-term investors to buy stocks, those with medium-term and short-term view are unlikely to make handsome gains.




RELATED WIKI ARTICLES

Related Articles

 
TOP CONTRIBUTORS

Earnings per share is a company's total earnings divided by the total number of shares outstanding. It is calculated using annual earnings, usually after interest and taxes and after deducting the preference shares dividends, so as to compute the portion of total profit which is attributable to the ordinary shareholders. In this case, total earnings would be divided by the total number of ordinary shares outstanding.

There are three types of EPS numbers:

  1. a trailing EPS (calculated using the previous year's earnings),
  2. a current EPS (uses the current year), and
  3. forward EPS (a projection for the coming year).

Moreover, different accounting policies regarding the handling of new issue of ordinary shares, have led to the need of several computation approaches to the EPS ratio, in order to reflect in the best way possible the appropriate information for the users-stakeholders of the firm being analyzed. For this reason, there is the computation of the Basic EPS, the EPS Adjusted reflecting any bonus issue or rights issue or option/warrants exercise and the Diluted EPS - DEPS which reflects the convertible bonds or shares to ordinary shares (the approaches are being determined by the accounting policies in effect). Existing shareholders can look at the DEPS to see the effect on current profitability of commitments already entered into to issue ordinary shares in the future.

What is important, is that very often EPS is used as a considerable tool-indicator of a firm's performance. It measures performance from the perspective of investors and potential investors.Additionally, it shows the amount of earnings available to each ordinary shareholder, so that it indicates the potential return on individual investments. These results can be achieved by comparing the EPS of either different entities or the same entity's in different accounting periods, or even better, using both. Sometimes, the trend in EPS may be more accurate performance indicator than the trend in profit, though it is based on profit on ordinary activities after taxation.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki