EPS Growth
How many percent earnings per share (EPS) grew over the same period a year ago — the growth pace of the shareholders' share of profit.
In plain terms
If revenue growth is "how much more got sold," EPS growth is "how much more one share earns than a year ago."
It is the growth pace most tangible to a shareholder. It reflects not just total company profit but the share count too, showing how fast "my one share's earnings" grows.
What it tells you
Over the long run the share price tends to follow per-share earnings (EPS), so EPS growth is often cited as the engine of long-term price.
If revenue rises but EPS does not, it can mean costs are rising faster or the share count is growing, thinning the shareholders' share.
Formula
EPS growth = (this quarter's EPS − year-ago quarter's EPS) ÷ |year-ago quarter's EPS| × 100
What high or low means
High EPS growth means per-share earnings are growing fast.
One quarter is swayed by one-off items, so it is best read as a multi-quarter trend, and if the prior year's EPS was a loss, the growth rate is distorted and means little.
EPS growth can come not from rising profit but from a smaller share count via buybacks. It has to be read with revenue and net-income growth to know whether it is "real business growth."
A low prior-year base (the year after a loss or a temporary slump) makes the growth rate look exaggerated.
When a one-off profit (asset sale, etc.) makes a given quarter's EPS spike, the growth rate spikes too, so you have to look at its source.
Metrics to read alongside
See it in real stocks
Search US stocks on Stocklore to see EPS and other financial metrics alongside the sector average.
This explanation is for information and reference only and is not a recommendation to buy or sell any security. Investment decisions and their consequences are your own.