The term earnings per share (EPS) represents the portion of a company’s earnings, net of taxes and preferred stock dividends, that is allocated to each share of common stock. The figure can be calculated simply by dividing net income earned in a given reporting period (usually quarterly or annually) by the total number of shares outstanding during the same term. Because the number of shares outstanding can fluctuate, a weighted average is typically used.
EPS is a carefully scrutinized metric that is often used as a barometer to gauge a company’s profitability per unit of shareholder ownership. As such, earnings per share is a key driver of share prices. It is also used as the denominator in the frequently cited P/E ratio.
EPS can be calculated via two different methods: basic and fully diluted. Fully diluted EPS — which factors in the potentially dilutive effects of warrants, stock options and securities convertible into common stock — is generally viewed as a more accurate measure and is more commonly cited.
Ericsson (ADR) (NASDAQ:ERIC) have shown a high EPS growth of 25.80% in the last 5 years and has earnings growth of 22.20% yoy. Analysts have a mean recommendation of 2.30 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 -25.62% below its 52-week highs and is up 2.23% for the last five trades.
BRF SA (ADR) (NYSE:BRFS) shares are trading -41.11% below the 52-week high and has displayed a high EPS growth of 85.00% in last 5 years. The 1 year EPS growth rate is 109.70%. Its share price has decline -21.62% in three months and is down -2.42% for the last five trades. The average analysts gave this company a mean recommendation of 2.80.
Marriott International Inc (NASDAQ:MAR) floats -18.28% below the 52-week top level and its EPS growth rate was 35.80% over prior 5 years with earnings growth of 19.70% yoy. Mean recommendation on this stock is 2.50. The stock has a 1-year performance down -10.88% and negative at -4.26% in last five trading sessions.