Unless they are getting hit with prepayment obligations. Not sure how they can manipulate those from an accounting perspective, but I assume there is some wiggle room, even if cash is going out the door in the qtr. I'm pretty sure Devinder will be as creative as legally possible on the EPS front for Q3, but TWT.
Unfortunately, it won't be easy to tell, because cash & equiv was $6B at the end of Q2, and they bought $920M of their own shares. That has taken a huge hit, and perhaps significantly more if they doubled down and bought another $1B of their own shares in Q3. So looking at cash & equiv will be interesting in the report, but knowing he puts and takes in that will be very difficult between the various moving pieces. Inventory, accounts receivables, new cash income, stock purchases, and the cratering stock price. Of course, the big crater came after the qtr closed, it closed Q3 near $80, and they might have bought near $75 in early July, so that might cushion the decline a bit. I wonder how much of their $8B buyback is still hanging out there. |
