A quién sirve — Anyone tracking earnings and multiples: EPS is profit per share — direct input to P/E and post-print price reaction.
EPS (Earnings Per Share) is net income / diluted shares outstanding — standard measure of per-share profitability. Distinguish basic (outstanding) and diluted (includes options, converts).
In plain terms — «How much profit belongs to each share you own» — headline of earnings releases.
Variants
| Type | Use |
|---|---|
| GAAP EPS | Official accounting |
| Adjusted / non-GAAP | Excludes one-offs — read reconciliation |
| TTM | Last four quarters |
| Forward | Analyst estimate for forward P/E |
EPS beat/miss vs guidance and consensus moves price short-term — quality (cash vs accrual) matters medium-term.
Limits
- Buybacks reduce share count → EPS ↑ without better business
- Accounting choices (depreciation, revenue recognition)
- Does not measure cash — compare with FCF per share
- Dilution from stock-based comp in tech
Error típico — Trading EPS beat only without forward guidance — stock down on «beat but lower guide».
Ejemplo — Net income €100M, 50M diluted shares → EPS €2.00. Consensus €1.85 → beat; if full-year guide ↓, negative reaction possible.
Card
- Fuente: income statement.
- Metric: EPS growth YoY, FCF/EPS.
- Event: earnings date + call.