InsiderFlow › Glossary › What is EPS (earnings per share)?
EPS is net income divided by the number of shares: how much the company earns for every single share outstanding.
It's the most watched number in every earnings report: analysts publish EPS estimates and the stock moves on the gap between results and expectations ("beat" or "miss"). A company can grow EPS by earning more or by shrinking its share count through buybacks.
Mind the difference between "reported" EPS (accounting) and "adjusted" EPS (massaged by companies to exclude one-off items): the latter is almost always more flattering.
On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.
Because expectations rule: record EPS that still misses analyst estimates disappoints the market.
The gap between published EPS and consensus estimates: positive surprises lift the stock, negative ones sink it.