Earnings Per Share (EPS)

SeekingAlpha  6 hrs ago  Comment 
By Brian Gilmartin: We thought we'd kill two birds with one stone today and give short, sweet summaries of Alcoa's (AA) and Micron's (MU) recent quarterly results and what we think the rest of the year holds for both stocks. Going in...
StreetInsider.com  Apr 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Ceres+%28CERE%29+Tops+Q2+EPS+by+1c/9371870.html for the full story.
StreetInsider.com  Apr 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Amazon.com+%28AMZN%29+Will+Report+Q1+Results+April+24th%3B+Street+sees+28%25+EPS+Growth/9371693.html for the full story.
StreetInsider.com  Apr 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Guidance/Gap%2C+Inc.+%28GPS%29+March+Comps+Fell+6%25%3B+FY14+EPS+Outlook+Reaffirmed/9371593.html for the full story.
newratings.com  Apr 10  Comment 
WASHINGTON (dpa-AFX) - Discount retailer Family Dollar Stores Inc. (FDO) said that its net income for the second quarter of fiscal 2014 declined to $90.9 million from $140.1 million in the second quarter of fiscal 2013. Quarterly earnings per...
newratings.com  Apr 10  Comment 
WASHINGTON (dpa-AFX) - Specialty financial services firm Cash America International, Inc. (CSH) Thursday said it expects first-quarter earnings to be above its previously announced expectations. The company now expects net income per share to be...
StreetInsider.com  Apr 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Pier+1+Imports%2C+Inc.+%28PIR%29+Tops+Q4+EPS+by+19c%3B+Guides+FY15+EPS/9369059.html for the full story.
newratings.com  Apr 9  Comment 
UNION (dpa-AFX) - Bed Bath & Beyond Inc. (BBBY) reported net income for the fourth quarter of $333.3 million or $1.60 per share, compared to $373.9 million or $1.68 per share for the year-ago quarter. Net sales for the fourth quarter fell 5.8% to...
StreetInsider.com  Apr 9  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/NeoPhotonics+%28NPTN%29+Misses+Q3+EPS+by+2c/9367819.html for the full story.
StreetInsider.com  Apr 9  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Ruby+Tuesday+%28RT%29+Reports+In-Line+Q3+EPS%2C+Revenue+Beats%2C+Offers+Outlook/9367583.html for the full story.


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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.

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