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    Advancedsoldier's Avatar
    Advancedsoldier Posts: 1, Reputation: 1
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    #1

    Dec 10, 2012, 12:39 PM
    Eps is zero?
    How can a company report earnings all year, but one quarter they report 0.00 EPS. What does this mean? Is it bad/good? All the help you can give me about this is much appreciated! Thank you!
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Dec 10, 2012, 01:46 PM
    If EPS = 0 it simply means that the revenues they reported equals the expenses they reported. Whether that's good or bad depends. In general you want positive EPS, and consistency quarter-to-quarter can be a good thing. But some businesses are highly seasonal, so a high EPS quarter may be followed by zero, or even negative EPS in the next quarter. If the company took an extraordinary charge against expenses for investment in new technologies, or for a major marketing campaign, or for restructuring to closded an unprofitable plant that can be a good thing for the future. But if the reason for falling EPS is falling revenue below expectations that is probably a bad thing.
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