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The damage will not be limited to the third quarter, although many companies, like insurers, will take their biggest earnings reduction in this quarter.
In addition, there was a one-time earnings reduction of 7 cents a share for a buyback of Ford's series B preferred stock.
Executives of the KeySpan Energy Corporation are being investigated by the Securities and Exchange Commission for trades they made before KeySpan, a natural-gas supplier, disclosed accounting mistakes and a $30 million earnings reduction last July, the company said yesterday.
The accountants are now debating how to account for the transaction, and whether companies that make such gifts to their executives ought to suffer an earnings reduction as a consequence.
Mr. Sherlund did not reduce his quarterly earnings estimate of 41 cents a share because he says the earnings reduction of 2 cents a share from lower revenues will be offset by increased income from Microsoft's sizable investment portfolio.
A negative case could be that the shares are still quite highly rated on a 2015 estimated PE of 16.7 times, given the pattern of earnings reduction in recent years and the lack of organic revenue growth in the first half of 2014.
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And the Corporate Outcomes include Earnings, Cost Reduction, Corporate Image and worker satisfaction among others.
Earlier headlines Cingular Wireless Said To Cut Work Force Union Wins Right To Wal-Mart Documents HP To Take $200M Hit For Staff Reductions Deere Q4 Earnings Top Estimates BASF To Cut About 3,600 Jobs In Germany Study: Real Costs of Mutual Funds Hidden EU Clears Deal on Motorized Vehicles.
Earnings at General Motors reflected continuing "cost reduction," said John Finnegan, G.M.'s acting chief financial officer.
Earnings above these caps will result in a reduction to your SPIF award.
Since the SCC can only order a base rate reduction after two consecutive reviews show the utility has been over-earning, the new law would lengthen the period of time before which a rate reduction would become a possibility to six years.
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