Comparing EPS in absolute terms may not have much meaning to investors because ordinary shareholders do not have direct access to the earnings. Instead, investors will compare EPS with the share ...

Earnings per share is the quotient of a company's net income divided by the number of shares of stock it has outstanding. In other words, EPS is a company's profit expressed on a per-share basis.

EPS represents profitability per share by dividing net income minus preferred dividends by shares outstanding. Consider EPS limitations such as incompleteness in conveying actual cash flow and ...