The portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability.
Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio.
An important aspect of EPS that’s often ignored is the capital that is required to generate the earnings (net income) in the calculation. Two companies could generate the same EPS number, but one could do so with less equity (investment) – that company would be more efficient at using its capital to generate income and, all other things being equal, would be a “better” company. Investors also need to be aware of earnings manipulation that will affect the quality of the earnings number. It is important not to rely on any one financial measure, but to use it in conjunction with statement analysis and other measures.
Analysts gives Industrias Bachoco, S.A.B. de C.V. (ADR) (NYSE:IBA) a mean recommendation of 3.00. The company has declined -11.70% in past 3 months. The stock has earnings growth of 28.50% yoy and showed a high EPS growth of 37.90% over the past five years. Shares are trading -12.19% below their 50-day moving average, and -9.34% below their 200-day moving average.
Hain Celestial Group Inc (NASDAQ:HAIN) was trading -39.56% below its 52-week high and +6.17% above its 52-week low. Its last 5-Year EPS growth stands at 28.60% with earnings growth of 66.70% yoy. The stock has a 1-year performance down -24.57% and a positive weekly performance at 3.97%. The company is set at a mean analysts’ recommendation of 1.80.
Old Dominion Freight Line (NASDAQ:ODFL) shares are trading -21.81% below the 52-week high and has displayed a high EPS growth of 28.10% in last 5 years. The 1 year EPS growth rate is -21.38%. Its share price has decline -4.18% in three months and is down -1.30% for the last five trades. The average analysts gave this company a mean recommendation of 2.10.