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EPS (Earnings per share)

A company's profit divided by its number of shares.

FundamentalsBeginner

Definition

EPS is the most quoted profit measure. Analysts publish estimates, and a result above the estimate is called a beat and below it a miss. GAAP EPS follows accounting rules; adjusted or non-GAAP EPS leaves out certain items.

Formula

EPS = (net income - preferred dividends) / weighted average shares outstanding

Watch out for

Compare GAAP and adjusted EPS. A big gap can mean large costs are being excluded.

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