accounting

earnings per share

A company's net profit divided by its number of outstanding shares, indicating profitability per share.

Example

"The company reported earnings per share of $3.50, beating analyst expectations of $3.20."

💡 Memory Tip

EPS = EARNINGS divided by each SHARE. What does each share of stock earn for you?

Etymology

Earnings (profit) + per (for each) + share — how much profit each share represents.

Common Misspellings

earnings per shaireearings per shareearnings per sharearnings per shre

Related Terms

profitstockdividend

See Also

P/E ratio

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