Current Events > Reminder: GM used the Trump tax cuts to buy back their stock. Now cutting jobs..

(+) Yeah! (+)

Water is Wet. Trumpastanis still Cucking.
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seems like they lost money on that stock buyback
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Darkman124 posted...

seems like they lost money on that stock buyback

During this four-year period in which GM blew, wasted, and annihilated nearly $14 billion on share buybacks, the price of its shares, including todays 5.5% surge getting rid of workers is always good news for shares fell 10%.

But dont worry. All those expenses incurred during this restructuring will be adjusted out of the non-GAAP metrics that Wall Street touts. GM reassured us in the statement that these costs will be adjusted out of EBIT (earnings before interest and taxes), adjusted EPS (earnings per share), and its automotive free cash flow. But the cost savings from reduced salary expenses, etc. will be fully represented in all metrics in all their glory. Wall Streets accounting magic wins again.

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when shadowy behavior comes to light
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Barenziah Boy Toy posted...

But dont worry. All those expenses incurred during this restructuring will be adjusted out of the non-GAAP metrics that Wall Street touts. GM reassured us in the statement that these costs will be adjusted out of EBIT (earnings before interest and taxes), adjusted EPS (earnings per share), and its automotive free cash flow. But the cost savings from reduced salary expenses, etc. will be fully represented in all metrics in all their glory. Wall Streets accounting magic wins again.

that's not AS unreasonable, since one-time expenses are not reflective of earnings capacity for the long-term stability of the company

instead, those costs come out on metrics like cash:debt ratios and PEG

in a similar vein, the GAAP earnings of general electric are about -$2/share this quarter because they lowered the goodwill of their power division by 23 billion.

that wasn't an actual cost, it is an asset they now value 23 billion less (because they're probably selling the majority of it, so their relationships with customers, which is what goodwill measures, are worth a lot less). it was actually losing them money, before accounting for debt, so them selling it will probably not lower their earnings in future quarters, esp considering its exposure was to a form of energy production that is in secular decline.

they reported non-GAAP earnings of about $.20/share, and will probably also not include the sale of power assets next quarter in their non-GAAP earnings, because again, one-time.
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The buyback program they announced way before the tax cuts or what?
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e: GE3Q was 0.14 not .20.
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