Earnings per Share (EPS)

Earnings Per Share (EPS) is a financial metric that measures how much profit a company generates per outstanding share of stock. It’s a key indicator used by investors to evaluate a company’s profitability and growth potential.

Formula for EPS:

Why EPS Matters:

• Higher EPS = More profitable company (all else being equal).
• Used in valuation metrics like the Price-to-Earnings (P/E) ratio.
• Compared over time to track a company’s growth.
• Adjusted EPS accounts for non-recurring items to give a clearer picture of ongoing earnings.

Investors tend to prefer companies with consistently rising EPS, as it suggests strong financial performance and potential stock price growth.

You can check recent earnings per share, as well as projections for upcoming earnings, on the Unusual Whales Earnings Page