Earnings Per Share (EPS)
Earnings Per Share (EPS) is a company's net profit divided by its number of outstanding shares. It's the foundation of stock valuation — the PE ratio is literally price divided by EPS. When a company reports quarterly earnings, the EPS number (and how it compares to estimates) drives the stock's reaction.
EPS Formula
EPS = (Net Income − Preferred Dividends) / Weighted Average Shares Outstanding- Basic EPS — Uses actual shares outstanding.
- Diluted EPS — Includes all potential shares from options, warrants, convertibles. More conservative.
- EPS Surprise — Actual EPS vs analyst consensus estimate. Beating estimates = positive surprise.
- Earnings Growth — Year-over-year EPS growth is a key measure of company health.
- Quality of Earnings — Cash-backed EPS is more reliable than earnings inflated by accounting adjustments.
View upcoming earnings and EPS estimatesEarnings Calendar