Glamsplainin' Earnings Per Share (EPS)

MARKET COMMENTARY FOR July 19, 2018

silhouette-women-shopping-12.jpg

Earnings season is in full swing and we are breaking down the components of the earnings report. First up:

Earnings Per Share. Earnings per Share is considered by the glitterati to be the single most important thing in determining a stock’s price. It’s totally Gucci and helps an investor determine what the fans are willing to pay for a share based on a company’s current earnings. Technically, it is the portion of a company’s profit allocated to each outstanding share of common stock. It’s definitely a sign of a company’s profitability.

If you want to get your nerd on, earnings per share is calculated as:

EPS = Company’s Net Income – Dividends on Preferred Stock
Average Outstanding Shares

Have a great weekend Savvies!

business-women-group-silhouette-clip-art-1771623.jpg

Squad Goals

We Ask and Our Squad Answers
Our squad is comprised of ten Wall Street experts from the top asset management firms. Each week we ask them a question, and they poll in!

Do you think the U.S. economy is solid enough to absorb the impact of impending tariffs?

Our squad says...yes.

Agree with the squad? Tell us on Twitter #SavvySquadPoll

Heads Up

Marlon Bovell