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How did they miss earnings, after buying back $2.3B of stock in Q1?
by randomname2 10y ago
How did they miss earnings, after buying back $2.3B of stock in Q1?
- losty 10y agoThe two are unrelated. They could spend all their cash on buybacks and the earnings would be the same.
- deleted 10y ago[deleted]
- ucha 10y agoEarnings are reported per share so stock buybacks are actually a pretty common way to make earnings look better. Of course, it doesn't change the total earnings but the number reported by techcrunch would indeed change.
- jonknee 10y agoThe analysts making EPS estimates know about the buybacks too and increase the EPS to compensate.
- deleted 10y ago[deleted]
- randomname2 10y agoBy earnings I meant EPS
- maaku 10y agoStock buyback is not revenue.
- GCA10 10y agoTotal market capitalization is roughly $500 billion. So buying back $2.3 billion of shares only shrinks the number of shares by less than 0.5%. That improves EPS by all of about 3 cents. Not enough to matter.
- tonfa 10y agoMiss is relative to the analysts expectations.