The financial acronym EPS stands for Earnings per Share. The EPS measures how much a company has earned over a given period of time calculated on a per share basis.
For example, Earnings per Share or EPS will generally be reported every quarter by most major publicly traded companies. The disclosure of earnings is a periodic highlight in the fundamentals of a company’s stock, and the stock can trade with increased volatility when earnings are scheduled to be reported. Nevertheless, often the expectations have already been factored into the market, and a favorable report could then trigger a sell off in the company’s stock. The EPS make up a key factor in the pricing of a stock and relates directly to the P/E ratio or Price/Earnings ratio which is the ratio of the price of the stock to its yearly earnings.