What is the meaning of Earnings per share (EPS)?

Earnings per share (EPS) is a company's profit divided by its number of common outstanding shares. If a company earning $2 million in one year had 2 million common shares of stock outstanding, its EPS would be $1 per share. In calculating EPS, the company often uses a weighted average of shares outstanding over the reporting term. The one-year (historical or trailing) EPS growth rate is calculated as the percentage change in earnings per share. The prospective EPS growth rate is calculated as the percentage change in this year's earnings and the consensus forecast earnings for next year.

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APABarry Goldsmith. (2010). Earnings per share (EPS). Retrieved September 24, 2026, from http://smartdefine.org/earnings_per_share_(eps)/definitions/1152626
ChicagoBarry Goldsmith. 2010. "Earnings per share (EPS)" http://smartdefine.org/earnings_per_share_(eps)/definitions/1152626 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, Earnings per share (EPS), Smart Define, viewed 24 September, 2026, <http://smartdefine.org/earnings_per_share_(eps)/definitions/1152626>.
MLABarry Goldsmith. "Earnings per share (EPS)" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/earnings_per_share_(eps)/definitions/1152626>