Earnings per share (EPS) is a company’s profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company’s profitability. It is common for companies to report EPS that is adjusted for extraordinary items and potential share dilution. EPS is one of the most important variables in determining a share’s price and is a key indicator used by investors to assess corporate value.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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