Alphabet slides 5% after missing earnings expectations on revenue of $20.3B

Re:Alphabet slides 5% after missing earnings expectations on... by randomname2 on Thursday April 21, 2016 @05:35PM (#11545514)

How did they miss earnings, after buying back $2.3B of stock in Q1?

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Re:Alphabet slides 5% after missing earnings expectations on... by GCA10 on Thursday April 21, 2016 @06:32PM (#11545804)

Total 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.

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Re:Alphabet slides 5% after missing earnings expectations on... by losty on Thursday April 21, 2016 @06:10PM (#11545678)

The two are unrelated. They could spend all their cash on buybacks and the earnings would be the same.

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Re:Alphabet slides 5% after missing earnings expectations on... by ucha on Thursday April 21, 2016 @06:57PM (#11545921)

Earnings 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.

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Re:Alphabet slides 5% after missing earnings expectations on... by jonknee on Friday April 22, 2016 @03:33PM (#11551998)

The analysts making EPS estimates know about the buybacks too and increase the EPS to compensate.

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Re:Alphabet slides 5% after missing earnings expectations on... by randomname2 on Friday April 22, 2016 @03:44AM (#11547616)

By earnings I meant EPS

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Re:Alphabet slides 5% after missing earnings expectations on... by tonfa on Thursday April 21, 2016 @06:32PM (#11545806)

Miss is relative to the analysts expectations.

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Re:Alphabet slides 5% after missing earnings expectations on... by maaku on Thursday April 21, 2016 @06:14PM (#11545699)

Stock buyback is not revenue.

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