Earnings per share (EPS)is the monetary value of earnings per outstanding share of common stock for a company.
In the United States, the Financial Accounting Standards Board (FASB) requires EPS information for the four major categories of the income statement: continuing operations, discontinued operations, extraordinary items, and net income.
Preferred stock rights have precedence over common stock. Therefore, dividends on preferred shares are subtracted before calculating the EPS. When preferred shares are cumulative,[jargon] annual dividends are deducted whether or not they have been declared. Dividends in arrears are not relevant when calculating EPS.
Earning per share is the same as any profitability or market prospect ratio. Higher earnings per share is always better than a lower ratio because this means the company is more profitable and the company has more profits to distribute to its shareholders.
NXP Semiconductors NV (NASDAQ:NXPI) have shown a high EPS growth of 34.20% in the last 5 years and has earnings growth of 201.10% yoy. Analysts have a mean recommendation of 1.70 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within the 4 range, and “strong sell” within the 5 range). The stock appeared -24.19% below its 52-week highs and is up 2.18% for the last five trades.
ARM Holdings plc (ADR) (NASDAQ:ARMH) shares are trading -15.51% below the 52-week high and has displayed a high EPS growth of 42.40% in last 5 years. The 1 year EPS growth rate is 141.20%. Its share price has grown 4.32% in three months and is up 42.40% for the last five trades.
Dollar General Corp. (NYSE:DG) floats -10.75% below the 52-week top level and its EPS growth rate was 27.40% over prior 5 years with earnings growth of 10.30% yoy. Mean recommendation on this stock is 2.10. The stock has a 1-year performance up 4.62% and positive at 1.26% in last five trading sessions.