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.
Pioneer Natural Resources (NYSE:PXD) have shown a high EPS growth of 49.20% in the last 5 years and has earnings growth of 50.20% yoy. Analysts have a mean recommendation of 2.00 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 -31.27% below its 52-week highs and is down -4.21% for the last five trades.
Lennar Corporation (NYSE:LEN) shares are trading -12.71% below the 52-week high and has displayed a high EPS growth of 25.70% in last 5 years. The 1 year EPS growth rate is 30.20%. Its share price has decline -3.05% in three months and is up 0.41% for the last five trades.
Biogen Inc (NASDAQ:BIIB) floats -37.05% below the 52-week top level and its EPS growth rate was 29.90% over prior 5 years with earnings growth of 14.60% yoy. Mean recommendation on this stock is 2.00. The stock has a 1-year performance down -11.32% and positive at 1.72% in last five trading sessions.