EPS (ttm)

Net income divided by the number of common shares currently outstanding. This is the simplest calculation.

This calculation assumes that all stock options, convertible bonds, and similar instruments are converted into shares. Because it includes shares that could potentially be issued, Diluted EPS is always equal to or lower than Basic EPS. In practice, Diluted EPS is more conservative and reliable, so most financial websites use this figure.

This is a strong signal that the company is steadily improving its profitability. Double-digit growth for 3–5 consecutive years is especially positive. For example, NVIDIA's EPS grew over 500% year-over-year in 2024 thanks to explosive AI demand.

This is common in mature companies. Value stocks like Coca-Cola and Johnson & Johnson are stable but show low EPS growth. Instead, they reward shareholders through dividends.

If net income is a loss, EPS will also be negative. Negative EPS can be normal for early-stage growth companies (for example, Amazon in the past or many biotech firms today), but a sudden swing to losses for a mature company is a warning sign. Loss-making companies cannot have a P/E ratio calculated, so it is shown as "N/A".

Revenue is the total income before deducting costs, while EPS is the per-share value of the final net profit after all costs are subtracted. Even if revenue grows, EPS can decline if costs grow faster. Amazon, for example, has $600 billion in revenue but a relatively small EPS due to its thin net profit margin.

Net income is the total profit of the whole company, while EPS is that profit divided by the number of shares. Even with the same net income, EPS can differ depending on the number of shares outstanding. So when comparing companies of different sizes, EPS is a fairer comparison than net income.

P/E = Stock Price / EPS. In other words, EPS is the denominator of the P/E ratio. If EPS is $5 and the stock price is 'eps-ttm': 00, the P/E is 20. If EPS rises (with the stock price unchanged), the P/E falls, creating a value opportunity. After earnings are released, if EPS rises but the stock price does not, the lower P/E creates a "valuation re-rating" opportunity.

Trailing EPS (TTM) is based on the past 12 months of results, while Forward EPS is based on analysts' estimates for the next 12 months. If Forward EPS is higher than Trailing, the market expects results to improve; if lower, it signals expected deterioration.

Characterized by high EPS growth. Big Tech names like Microsoft, Apple, and Google deliver 15–30% annual EPS growth thanks to high margins. On the other hand, early-stage SaaS companies often show low or negative EPS because they reinvest heavily in growth. For tech stocks, EPS growth speed is the key driver of valuation.

Show relatively stable EPS. Large banks like JPMorgan and Bank of America see EPS move with the interest rate environment, but changes are usually gradual. However, during recessions, rising loan-loss provisions can cause EPS to drop sharply, so the economic cycle matters.

Most companies in this sector are unprofitable (negative EPS). They spend years pouring money into R&D for new drugs, so revenue is nearly zero until FDA approval. Moderna, for example, posted losses for years before its COVID vaccine success drove EPS to explode in 2021–2022. In biotech, pipeline and cash runway matter more than EPS.

EPS growth is low (3–6% per year) but very stable. Companies like Procter & Gamble and NextEra Energy maintain steady EPS regardless of the economy, and that stability is the foundation for dividends. These are defensive sectors suited for conservative investors.

When a company buys back its own shares, the share count falls, so EPS can rise even if net income is unchanged. Apple has spent over $80 billion per year on buybacks, reducing its share count by more than 40% over the past decade. In this case, "EPS growth" may be the result of financial engineering rather than real business growth, so compare net income growth with EPS growth to see whether the growth is genuine.

One-time items such as gains from selling a factory, lawsuit settlements, or restructuring costs can distort EPS. For example, if Google sells a business unit, EPS for that quarter may spike temporarily, but that is not sustainable profit. If the gap between Non-GAAP EPS (excluding one-time items) and GAAP EPS (including one-time items) is large, be cautious.

Some companies inflate EPS by adjusting the timing of revenue recognition, capitalizing expenses, or tweaking reserves. Major scandals like Enron and WorldCom are textbook examples. If operating cash flow is consistently lower than net income, the quality of earnings is questionable. Changes in depreciation methods, tax benefits, and other adjustments can also affect EPS, so it pays to read the footnotes.

Not necessarily. The absolute EPS number is relative to the share price. Even an EPS of 'eps-ttm': 0 can be expensive if the stock price is $500, giving a P/E of 50. Conversely, an EPS of 'eps-ttm': with a stock price of 'eps-ttm': 0 has a P/E of 10, which may be undervalued. In addition, EPS inflated by one-time gains or buybacks may not be sustainable. Always check the "quality" of EPS and its growth trend together.

It depends. Amazon posted losses for several years while focusing on gaining market share, eventually generating enormous profits. On the other hand, companies with persistent losses and dwindling cash face bankruptcy risk. When investing in loss-making companies, always check revenue growth, cash on hand, burn rate, and the expected timeline to profitability.

Dividends are a portion of EPS returned to shareholders in cash. The payout ratio is calculated as Dividends / EPS, and a ratio of 60% or below is generally healthy. For example, EPS of $5 with a $2 dividend gives a 40% payout ratio. If the payout ratio exceeds 100%, the company is paying out more than it earns, which signals a risk of dividend cuts.

Earnings season happens in January, April, July, and October, when companies report their quarterly results. Before the announcement, check the analyst consensus EPS, and after the release compare it with the actual EPS. Companies that beat EPS estimates consistently show strong management execution and tend to maintain upward price momentum. Checking the whisper number (unofficial expectations) can lead to even more precise analysis.

Most U.S. companies release earnings after the U.S. market close (after hours) or before it opens (pre-market). In Korean time, that translates to around 5:00–7:00 AM (after-hours announcements) or around 10:00 PM–midnight (pre-market announcements). Big Tech names (AAPL, MSFT, GOOGL, AMZN, META) typically report after the close, so Korean investors usually see the results in the early morning hours.

For Korean investors, EPS is shown in U.S. dollars, so currency moves matter as well. If EPS is $5 and the exchange rate is 1,300 KRW, the value in won is about 6,500 KRW; at 1,400 KRW it is about 7,000 KRW. A rising won/dollar rate boosts the won value of dollar-denominated earnings, but it also makes buying U.S. stocks more expensive—so it is a double-edged sword.

During earnings season, you can preview the schedule on USStockToday's Earnings Calendar page. Right after the release, check both the EPS surprise and the company's guidance (forward outlook). The next-quarter EPS guidance the company provides is key information that drives the stock's direction going forward. Also, since the stock often moves sharply in after-hours trading right after the report, it is a good idea to check the U.S. extended-hours results before the Korean market opens the next day.