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If EPS decreases and stock price increases why would this happen

If EPS decreases and stock price increases why would this happen

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Stock price changes are notoriously difficult to predict, but the earnings-per-share figure is a good starting point for gauging a company's prospects. If a firm's EPS rises and meets or even beats consensus forecasts, the firm's shares stand to rise. However, sophisticated investors can spot management manipulation of EPS through actions such as buybacks.Earnings per share, is a measure of how much a share of stock earned or lost during a time period. EPS is usually measured on a quarterly and annual basis. An investor can quickly calculate the return on investment of a stock by utilizing EPS. For example, if an investor spent $20 per share on a stock and the firm's EPS was $5 for the period, then the return is $5/$20, or 25 percent.

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