Negative eps

This query is : Resolved 

08 October 2013 hello... what should we interpret If EPS(earning per shr) of the co. comes negativ ?????

08 October 2013 Companies don't always turn a profit.
Sometimes they lose money, in which case
their earnings are negative. When earnings are
negative, then EPS will be negative, too. A
negative EPS tells you exactly how much
money the company lost per share of
outstanding stock, which is why you'll also see
it called "net loss per share." If a company
with 100 million shares loses $16 million, then
its EPS is negative 16 cents. No, the company
isn't going to send someone to shake you
down for 16 cents per share. But you'll still
"pay" for the loss in another way: A net loss
decreases the value of the firm, which typically
lowers the value of the stock.

09 October 2013 yes sanket is right.




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