When a Company goes into the stock market to buy back shares, the earnings are usually affected in a positive manner. For example, one million shares outstanding, Company earns $500,000 or .50 per share. Company then buys back 40,000 shares in the open market. If the Company earns the same $500,000 in the next reporting period, earnings per share would be approximately .52 per share ($500,000 divided by 960,000 shares) In Donnelley's case, the number of shares they buy back will depend on the market price of the stock when it is purchased. If the average price is $44-$45 a share, approximately 11 million shares will be repurchased. This would have a net effect of +.08 per share.