EPS is one of the most important metrics for evaluating a stock. It tells you how much profit a company generates for each share.

Formula

EPS = Net Income / Shares Outstanding

Types of EPS

  • Basic EPS: simple division
  • Diluted EPS: accounts for stock options, convertible bonds
  • Forward EPS: based on analyst estimates for next year

Why EPS Matters

EPS is the denominator in the P/E ratio. Rising EPS generally leads to rising stock prices. Falling EPS signals trouble.

Earnings Season in Asia

Most Asian companies report quarterly:

  • Japan: Apr, Jul, Oct, Jan (March fiscal year)
  • China/HK: Semi-annually (interim + annual)
  • India: Apr, Jul, Oct, Jan (March fiscal year)
  • Korea: Quarterly like US companies