Earnings estimates are going to rise with nearly 100% certainty. The buyback impact having a positive impact on earnings *is* 100% certainty. However, so is the loss of cash. It's a wash from that perspective, when executed. They are merely swapping cash for stock. Going forward, what matters is how the stock performs from the time it was bought back. In these first few days, obviously well. But if it declined to, say, 470, then the downside impact gets magnified.
Your thoughts on the increase to $50+/share earnings intrigue me. Would you share specifics on how you think that will be achieved, apart from the buyback? Do you think the iWatch will lead to a huge jump in total revenue, or do you see it coming more from the iPhone, etc.? Thanks. |
