A company's profit for a period divided by its number of shares. The figure analysts forecast and companies report each results season.
EPS is net profit attributable to shareholders divided by the number of shares on issue. Companies report statutory EPS and often an underlying figure that excludes one-off items; the two can differ a lot.
Analysts publish EPS forecasts, and the average of them is the consensus estimate.
Why it matters
Share prices follow earnings over time. In results season, what moves a share is mostly the gap between reported EPS (and guidance for the next period) and what was expected, not the level of profit itself.
