DEFINITION of Interim Earnings Per Share
Interim Earnings Per Share (EPS) is a measure of earnings calculated at a specified time, shorter than or before the end-of-year calculations. Interim earnings per share can be calculated at any time, using the number of outstanding shares and net income less any preferred dividends outstanding just as EPS is calculated at the time of reporting. A typical interim frequency is quarterly, and sometimes monthly.
BREAKING DOWN Interim Earnings Per Share
Interim Earnings Per Share is useful to both individuals and companies when valuation is necessary. It allows investors the ability to extrapolate yearly earnings for the company without having to wait for year-end EPS reporting. For example, if a company reports quarterly EPS of $1, it might be possible (with adjustments) to extrapolate that the company will have annual earnings of $4 per share and calculate valuation metrics from there.