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Updated 1mo ago.
Updated 1mo ago.
Average estimate of net earnings per share for the next 12 months, based on analyst consensus covering the company. Used to compute the forward P/E. The more analysts, the more credible the consensus. Usually revised after each quarterly earnings release.
If analysts forecast $250M profit next year for a 100M-share company, forward EPS is $2.50. Versus current EPS of $2, that implies 25% expected growth.
Forward EPS reflects expectations, not the past. Useful for a turnaround or fast-growing company whose recent results understate its potential. But it rests on analyst forecasts, which are often wrong.