Earnings per share, or EPS, is the portion of a company's profit attributable to each outstanding share. Basic EPS is commonly calculated by dividing net profit available to equity shareholders by the number of outstanding shares.
Why it matters
EPS helps investors track profitability on a per-share basis and compare a company's results across periods. Rising EPS can be positive, but the reason for the change matters.
Check the details
Share buybacks, dilution, exceptional items, and accounting choices can affect EPS. Read the results and notes rather than relying on one number.
