One thing to be aware of when seeing an increase in a company's EPS ratio, is that the increase may not mean the company had a growth in sales. This is because it's possible for a company to increase its EPS simply through buying back its own stock.
This stock buy back reduces the number of outstanding common shares without effecting net-income -- thereby inflating the EPS figure. That's why it's important that you study the company's financial statements in order to determine the real reason the EPS increased.
