Earnings per share or EPS is an important financial measure, which indicates the profitability of a company. It is a tool that market participants use frequently to gauge the profitability of a company before buying its shares. It is a term that is of much importance to investors and people who trade in the stock market. The higher the earnings per share of a company, the better is its profitability.
Tweet Earnings means profits. Before you buy a sharethis is the first figure that you need to check. An increase in earnings every year is a sign that the company in question is prima facie a good candidate for further analysis. Increasing earnings generally leads to a higher stock price.
Most of the high earning companies also pay regular dividend to its shareholders. The other names by which earnings are called are — ProfitsIncome etc. How does a company calculate earnings? Investors expect established companies like Infosys to declare high earnings.
If they report lower earnings for a quarter, the stock price would immediately tumble. New or Young companies, on the other hand, may go for years with negative earnings and still enjoy the favor of the market if investors believe in the future of the company.
In India, A financial year starts from 1st of April and ends on the subsequent march 31st. So the quarters are as follows- Quarter 1 -1st April to 30th June.
Earnings for the quarter will be declared in July Quarter 2 — 1st July to 30th Sept. Earnings for the quarter will be declared in Oct.
Quarter 3 — 1st Oct to 31st Dec. Earnings for the quarter will be declared in Jan. Quarter 4 — 1st Jan to 31st Mar. Earnings for the quarter will be declared in April.
Companies also declare half yearly results clubbing two quarters. Investors, based on the given facts, try to figure out the expected earnings of the company. This expectation of the investors is what is actually reflected in the share price movements.
So, in addition to the actual earnings, the expectation of earnings also play an important part in stock prices. Companies that fail to meet the expectations of the investors gets beaten by the market.
Earnings or growth towards positive earnings tell you how healthy a company is. This measurement divides the earnings by the number of outstanding shares.
The reason you reduce earnings to a per share basis is to compare it with another company. For example — Two companies A and B has earned a profit of crores each. Which one would you prefer? Both seems to be ok with you. However, if I say that company A has 75 Crore shares outstanding and company B has crore shares outstanding, which one would you prefer?Here's a list of the Top 50 Earning Blogs currently online!
These influential bloggers are the best in the business and make a lot of money online. Apple (AAPL) reports earnings on 1/31/ Shares are down % since reporting last quarter. The Earnings Whisper Score gives the statistical odds for the stock ahead of earnings. About Us. Speed Earning is a firm specializing in providing recommendations to its customers in Indian Commodity and Stock markets based on Technical Analysis.
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Rachel Brathen, the . The price/earnings ratio (often shortened to the P/E ratio or the PER) is the ratio of a company's stock price to the company's earnings per initiativeblog.com ratio is used in valuing companies. / = As an example, if stock A is trading at $24 and the earnings per share for the most recent month period is $3, then stock A has a P/E ratio of 24/3 or 8.
*The figures for Lenovo include sales of mobile phones by both Lenovo and Motorola. Source: Gartner (February ) Although Samsung was the No.1 vendor, Gartner .