Earning per share, also called net income per share, is a market prospect ratio that measures the amount of net income earned per share of stock outstanding. In other words, this is the amount of money each share of stock would receive if all of the profits were distributed to the outstanding shares at the end of the year.
Earnings per share is also a calculation that shows how profitable a company is on a shareholder basis. So a larger company’s profits per share can be compared to smaller company’s profits per share. Obviously, this calculation is heavily influenced on how many shares are outstanding. Thus, a larger company will have to split its earning amongst many more shares of stock compared to a smaller company.
Earnings per share or basic earnings per share is calculated by subtracting preferred dividends from net income and dividing by the weighted average common shares outstanding.
Although many investors don’t pay much attention to the EPS, a higher earnings per share ratio often makes the stock price of a company rise. Since so many things can manipulate this ratio, investors tend to look at it but don’t let it influence their decisions drastically.
Colony Capital Inc (NYSE:CLNY) have shown a high EPS growth of 80.20% in the last 5 years and has earnings growth of 3.80% yoy. Analysts have a mean recommendation of 1.80 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 -20.10% below its 52-week highs and is up 1.88% for the last five trades.
NorthStar Asset Management Group Inc (NYSE:NSAM) shares are trading -46.03% below the 52-week high and has displayed a high EPS growth of 32.00% in last 5 years. The 1 year EPS growth rate is -35.35%. Its share price has decline -18.60% in three months and is down -2.37% for the last five trades. The average analysts gave this company a mean recommendation of 1.80.
Bloomin’ Brands Inc (NASDAQ:BLMN) floats -33.60% below the 52-week top level and its EPS growth rate was 25.80% over prior 5 years with earnings growth of 244.40% yoy. Mean recommendation on this stock is 2.00. The stock has a 1-year performance down -23.17% and negative at -0.86% in last five trading sessions.