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Its operating earnings per share rose 14 percent to $3.51, partly reflecting fewer shares because of buyback programs.
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Shares of Caterpillar were up $3.30, or 4.8%, to $71.92 in midday Friday trading after the company reported earnings for the period ending March 31 that decreased by 2.9% but increased per share because of buybacks.
It would seem that such small sums can't change business fortunes, especially because cost of buybacks is confined to the balance sheet and doesn't make it to the income statement.
However, IBM actually decreased shares last year significantly because of their buyback.
There was also disappointment at a lack of buyback news.
A continuum of buyback contracts coordinate the supply chain.
When the market tanks the pace of buyback activity increases.
But Carol Bowie, director of governance research services at the Investor Responsibility Research Center, says investors are growing more suspicious of buybacks because they can mask big transfers of shareholder wealth to managers.
David Fried, editor of the Buyback Letter and Buyback Letter Premium Edition, predictably, is a big fan of buybacks, which he says offer companies more flexibility than dividends.
Its operating profits per share rose 18 percent, to $3.09 a share, reflecting fewer shares outstanding because of I.B.M. stock buyback programs.
(Nasdaq's original 29.9% stake only broke the 30% barrier because of a share buyback program at LSE).
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