Hershey vs Tootsie Roll
Earnings Per Share Earnings per share (EPS) is generally considered to be the single most important variable in determining a share's price. It is also a major component used to calculate the price-to-earnings valuation ratio. The EPS is somewhat helpful in comparing one company to another, assuming they are in the same industry, but it doesn’t tell you whether it’s a good stock to buy or what the market thinks of it. For that information, we need to look at some ratios. http://stocks.about.com/od/evaluatingstocks/a/eps1.htm Hershey
In order to analyze EPS for Hershey it is necessary to look at historical data. Using the EPS as listed at www.ih.advfn.com we get the following 5 years of EPS information:
2004 – 2.38, 2005 – 2.07, 2006 – 2.44, 2007 - .96, 2008 – 1.41
From this we can state that the company had relatively high EPS in 2004, 2005, and 2006 and then EPS dropped significantly in 2007. From 2007 to 2008 there was a significant growth in EPS. To analyze this further, we can note that there was not a substantial change in the number of shares outstanding, which indicates that the changes in EPS were caused mainly by the change in net income. While 2007 was a relatively poor year of income, the company has rebounded somewhat in 20008. Investors may see this company as a good place to invest as they are on an upswing in revenue, and will hopefully continue the trend of income growth. Tootsie Roll
In order to analyze EPS for Tootsie Roll, again it is necessary to look at historical data. Using the EPS as listed at www.ih.advfn.com we get the following 5 years of EPS information:
2004 – 1.06, 2005 – 1.28, 2006 – 1.08, 2007 - .86, 2008 - .66
From the EPS shown over the past 5 years we can state that Tootsie Roll has seen a decline in EPS over the past 3 years. Looking further into this, we can see that there has not been a significant increase in the number of shares outstanding therefore the drastic decline is due to a
In order to analyze EPS for Hershey it is necessary to look at historical data. Using the EPS as listed at www.ih.advfn.com we get the following 5 years of EPS information:
2004 – 2.38, 2005 – 2.07, 2006 – 2.44, 2007 - .96, 2008 – 1.41
From this we can state that the company had relatively high EPS in 2004, 2005, and 2006 and then EPS dropped significantly in 2007. From 2007 to 2008 there was a significant growth in EPS. To analyze this further, we can note that there was not a substantial change in the number of shares outstanding, which indicates that the changes in EPS were caused mainly by the change in net income. While 2007 was a relatively poor year of income, the company has rebounded somewhat in 20008. Investors may see this company as a good place to invest as they are on an upswing in revenue, and will hopefully continue the trend of income growth. Tootsie Roll
In order to analyze EPS for Tootsie Roll, again it is necessary to look at historical data. Using the EPS as listed at www.ih.advfn.com we get the following 5 years of EPS information:
2004 – 1.06, 2005 – 1.28, 2006 – 1.08, 2007 - .86, 2008 - .66
From the EPS shown over the past 5 years we can state that Tootsie Roll has seen a decline in EPS over the past 3 years. Looking further into this, we can see that there has not been a significant increase in the number of shares outstanding therefore the drastic decline is due to a