LOADING
A company's net profit divided by the number of outstanding common shares.
EPS indicates how much money a company makes for each share of its stock. Basic EPS uses the actual number of shares outstanding. Diluted EPS accounts for potential shares from options, warrants, and convertible securities and is considered the more conservative measure. Rising EPS generally drives stock price appreciation. Analysts closely track EPS relative to consensus estimates: companies that "beat" estimates tend to see stock price increases, while those that "miss" often experience declines.