Earnings Per Share (EPS)
Net profit divided by shares outstanding
What is Earnings Per Share (EPS)?
Earnings Per Share (EPS) A company's net profit divided by the number of outstanding shares. EPS beats or misses relative to analyst estimates drive post-earnings stock moves. Options traders use expected move calculations to price in anticipated earnings volatility.
Complete Definition
A company's net profit divided by the number of outstanding shares. EPS beats or misses relative to analyst estimates drive post-earnings stock moves. Options traders use expected move calculations to price in anticipated earnings volatility.
Example
Analysts expect $1.50 EPS. The company reports $1.65 (a beat), and the stock gaps up, causing IV crush on options.
Related Terms
Want to Learn More?
Explore our educational resources and analytics tools to deepen your understanding.