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Deckers Outdoor Corp. Message Board

  • steve.kandalam steve.kandalam Feb 23, 2012 6:53 PM Flag

    How are earnings flat if they are buying 100mln in stock

    The management is being extremely cautious- one question i have is if they buy back 100million worth of stock- at an 80 $ price that would be 1.2 million shares- the total shares are only 38 million- if it even buys just 1 million- and all things remain the same that would be a 2.6% increase in EPS- not a flat EPS- about 23 cents was amortization related to purchase- these are one time expenses- I hope the analysts take these facts into account and not just focus on headlines- there is more to it than just headlines
    The CC is worth listening to!

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    • the guidance for flat EPS is BEFORE the buyback- just in case the stock tanks- they will reduce the share count.
      Also $1.40 in EPSloss is because of sheep skin cost Inflation- which has topped out- and the prices should fall by thrid quarter.
      and ).23 cnets was 1 time amortization and store expense cost- this is non-recurring
      I will not get out of a long position regardless of what happenns tomorrow- seriously it was a 4 cent beat and higher revenues!
      they are very conservative with guidance- it is not that the earnings are zero it is still $5.07 with potential for a beat baked in- by the stock repurchase program.
      the headlines have been positive thus far- I hope people look at the facts and listen to the CC!
      just look what happened to fosl- they actually guided lower and they did not beat estimates(by the same margin)

    • Hmmmmm ..It does seem very interesting that they would knock the cover off the ball..guide extremely low and than announce a share buyback....Could be interesting tomorrow...If the company is buying, shorts are trying to cover, and new money finds the stock.. for those who don't believe the guidance and sees this as a bargain....
      Good luck all longs!!!

    • < How are earnings flat if they are buying 100mln in stock >

      Better go listen to the call again. As a long you need to hear all of what is said and not what you want to hear.

    • Good question. EPS should rise but the value of the company should remain flat as the cash outlay should reduce the value per share accordingly. Hopefully they are not guiding to flat EPS after considering the effect of the share buyback. It is interesting that they would be advised to announce a buyback in connection with the ER release. Its as if they knew that market was going to hammer the price and they wanted to send a signal that all is OK. A better ploy would have been for Angel et al to put personal skin in the game in the upcoming weeks. Share buybacks don't do much!

 
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