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Valuation

EPS (Earnings Per Share)

A company's net income divided by its outstanding shares.

In depth

EPS measures profitability on a per-share basis, allowing comparison across companies of different sizes. "Diluted EPS" includes the dilutive effect of stock options and convertible securities. "Adjusted" or "non-GAAP" EPS strips out one-time items management deems non-recurring. Beat/miss vs. analyst consensus drives short-term stock moves.

Example

Company with $1B in profit and 200M shares outstanding has EPS of $5.

Frequently asked about EPS (Earnings Per Share)

What is EPS (Earnings Per Share)?

A company's net income divided by its outstanding shares. EPS measures profitability on a per-share basis, allowing comparison across companies of different sizes. "Diluted EPS" includes the dilutive effect of stock options and convertible securities. "Adjusted" or "non-GAAP" EPS strips out one-time items management deems non-recurring. Beat/miss vs. analyst consensus drives short-term stock moves.

Why does EPS (Earnings Per Share) matter for investors?

In valuation, EPS (Earnings Per Share) is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

Can you give an example of EPS (Earnings Per Share)?

Company with $1B in profit and 200M shares outstanding has EPS of $5.

Recent news mentioning EPS (Earnings Per Share)

DeepSeek's 75% HBM Reduction Challenges Memory-Demand Growth Thesis for Micron and Sandisk Investors

The Quick Take * DeepSeek cut its KV-cache HBM memory requirement by 75% and SSD storage need by 87.5% through architectural efficiency improvements. * The breakthrough directly challenges the assumption that AI usage growth and memory demand rise proportionally. * Micron (MU) and Sandisk investors must reassess whether AI-driven memory demand growth is as durable as previously modeled. Synthesized from 1 source — full coverage, sentiment breakdown, and forward signals below. DeepSeek has

Sep 13, 2026

ZhiPu and MiniMax Enter Low-Price Growth Era as DeepSeek Cuts Force China AI Model Repricing

The Quick Take * Chinese AI companies ZhiPu and MiniMax are adapting to a 'low-price growth' era as DeepSeek's continued price cuts compress margins across the sector. * DeepSeek's latest pricing reductions have weakened revenue growth assumptions for China's second-tier AI model companies. * MiniMax is pivoting toward AGI capabilities as the commodity model market undercuts near-term monetization prospects. Synthesized from 2 sources — full coverage, sentiment breakdown, and forward signal

Sep 12, 2026

Hooker Furnishings Posts Q2 EPS Beat but Revenue Miss Signals Demand Softness in Home Goods

Key Takeaways * Hooker Furnishings (HOFT) reported Q2 EPS of $0.10, beating estimates despite a challenging home furnishings demand environment * Revenue fell short of analyst expectations, signalling that consumer spending on big-ticket home goods remains under pressure * The split result raises questions about whether Hooker is cutting costs to beat EPS at the expense of revenue-generating investment Hooker Furnishings' Q2 result of $0.10 adjusted EPS beating estimates while revenue misse

Sep 12, 2026

Kroger Misses Q2 EPS by $0.07 as Grocery Margin Compression Tests Undervaluation Thesis

Key Takeaways * Kroger reported Q2 adjusted EPS of $1.09 versus the $1.16 consensus estimate, missing by $0.07 or approximately 6% * The earnings miss follows a mixed performance against analyst estimates across revenue and margin metrics * The EPS shortfall tests the undervaluation thesis for KR stock at a time when grocery sector competition is intensifying Kroger's Q2 adjusted EPS of $1.09 against the $1.16 analyst consensus represents a meaningful miss that challenges the grocery chain'

Sep 12, 2026

Related terms

P/E Ratio (Price-to-Earnings)

A stock's price divided by its earnings per share — the most common valuation metric.

EPS (Earnings Per Share)

A company's net income divided by its outstanding shares.

Guidance

Management's forward-looking projections for revenue, earnings, or other metrics.

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