Earnings per share
A company's profit divided by its number of shares. Wall Street compares it with what analysts expected.
Also called: EPS
In the news
How “earnings per share” came up in recent issues.
- Oct 23Tech stocks slid on AI spending worries, and phones cost more
“Spotify's earnings per share came in below analysts' forecasts, but its outlook for the fourth quarter was above what analysts expected.”
Learn the bigger idea
Related words
- Stock
- A small slice of ownership in a company. One unit is called a share.
- S&P 500
- A stock market index that tracks about 500 of the biggest U.S. companies. It's the most common way to measure how the market did.
- Dow Jones Industrial Average
- A stock market index that tracks 30 large U.S. companies.
- Nasdaq Composite
- A stock market index of the thousands of companies listed on the Nasdaq exchange. It leans heavily toward tech companies.
- Revenue
- All the money a company brings in from sales, before any costs are taken out.
- Guidance
- A company's forecast of its future sales or profits. Stocks often move more on guidance than on past results.
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