# Equities Fundamentals

Fundamental data provides summaries of a an equities underlying financial performance. Fundamental data is what is most forecasted by sell-side equity research analysts.

## Earnings

### EPS Actual

Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability. It is common for a company to report EPS that is adjusted for extraordinary items and potential share dilution.

### EPS Estimate

Earnings per share (EPS) estimate is an analyst's estimate for a company's future quarterly or annual earnings per share (EPS). Future earnings estimates are arguably the most important input when attempting to value a firm. By placing estimates on the earnings of a firm for certain periods (quarterly, annually, etc.), analysts can then use cash flow analysis to approximate fair value for a company, which in turn will give a target share price.

### EPS Difference

The difference between the EPS actual and the EPS estimate for a company. The value of this metric provides insight as to whether the company exceeded or failed to live up to the earnings estimates of the analysts that monitor the company.

### EPS Surprise Percent

An earnings surprise occurs when a company reports quarterly or annual profits above or below analysts' expectations. These analysts, who work for a variety of financial firms and reporting agencies, base their expectations on a variety of sources, including previous quarterly or annual reports and current market conditions, as well as the company's own earnings' predictions or "guidance." This metric expresses the "surprise" as a percentage of the earnings estimate for a given quarter.

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