What is EPS in financial analysis and in what way it is used to indicate the performance of a company?

EPS meaning is Earnings Per Share, which is a share of the profit of a company. It is an essential feedback of profitability and a significant force behind stock value. An increase in the EPS is an indicator that the company is expanding, has its costs under control, and can earn more money to shareholders. EPS is used in a financial analysis to compare the companies of various size, as it uses the comparative profit per share as a standard. Investors use EPS trends to measure the stability of the business, the potential of the business to have future earnings, and their performance. It is also a contributor of other significant measures such as price-to-earnings (P/E) ratio and earnings yield.