Earnings per share is the portion of a company’s profit allocated to each outstanding share. Earnings per share is an indicator of a company’s profitability.
We look for a year-on-year increase of 10% or more, but it is important to look for consistency. It is better to find a company that has a consistent 10% or close, than a company that has 10%, 17%, 25%, 6%, and so on.
Watch out for share splits; the EPS value will drop as more shares will be on the market to divide by the earnings (profit).