Definition
A company's profit divided by its number of shares.
The story
If a company earns $10 billion and has 5 billion shares, its EPS is $2. Analysts forecast it ahead of every earnings report, and the stock's reaction often depends on whether the company beat or missed that forecast.
Why markets watch it
It's the headline number of an earnings report.
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We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms