Find my broker

📊 Analysis and information · Intermediate · 9 min read · Lesson 21 of 42 · Free with an account

How to read company earnings: EPS, revenue, guidance and earnings season

Companies listed on stock exchanges publish their results every quarter or half year. Earnings releases are some of the biggest events for share prices. A share can move 10% or more in a day when results surprise the market.

The key numbers

NumberWhat it means
Revenue (turnover, sales)Money the company took in
Operating profit (EBIT)Profit from the core business
Net profitProfit after interest and tax
EPS (earnings per share)Net profit divided by number of shares. JSE companies also report HEPS (headline EPS).
MarginsProfit as a % of revenue, shows pricing power and cost control
Guidance / outlookWhat management expects next
DividendCash paid to shareholders
Loading the rest of the lesson…

Questions people ask

What is HEPS on the JSE?

Headline earnings per share removes certain one-off items, such as gains or losses from selling assets, to show underlying performance. JSE companies must report it.

Read next

Educational content only, not financial, investment or tax advice. Trading forex and CFDs carries a high risk of losing money. Look up any term in the trading glossary.