Definition

1. Noun:
   • A financial metric: "Earning per share" (EPS) refers to the portion of a company's net profit that is allocated to each outstanding share of its common stock. It is a key indicator of a company's profitability on a per-share basis.

Usage

• As a subject or object in a sentence: "Earning per share" is used to discuss corporate profitability and is a standard figure in financial reports and investment analysis.
• Typically used with verbs like: calculate, report, increase, decline, compare.
• Commonly preceded by: the, a company's, its, annual, quarterly.

Examples

• Noun:
  • The company reported a strong earning per share of $5.00 for the quarter.
  • Analysts are closely watching the trend in the firm's earning per share.
  • A higher earning per share generally makes a stock more attractive to investors.

Advanced Usage

• "Diluted earning per share": A calculation that includes the impact of all potential shares that could be created from conversions, such as stock options or convertible bonds. It provides a more conservative view of profitability.
  • The diluted earning per share gives a clearer picture of potential future earnings distribution.
• "Basic earning per share": A simpler calculation using only the current number of outstanding shares.
  • The basic earning per share is a straightforward measure of current profitability per share.

Variants and Related Words

• EPS: A common abbreviation for "earning per share."
  • The EPS figure is prominently displayed in the annual report.
• Net income: The total profit of a company, from which EPS is derived.
• Outstanding shares: The total number of shares of a corporation's stock that are currently held by all its shareholders.

Synonyms

• Profit per share: A less formal synonym emphasizing the profit allocation.
• Net income per share: A more technical synonym that explicitly references net income.

Related Phrases

• "to beat EPS estimates": To report an earning per share figure that is higher than what financial analysts had predicted.
  • The tech giant managed to beat EPS estimates for the tenth consecutive quarter.
• "EPS growth": The rate at which a company's earning per share increases over time.
  • Sustained EPS growth is a primary goal for many public companies.

Noun

1. the portion of a company's profit allocated to each outstanding share of common stock