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But many others are swallowing the difference, at least for now: higher prices have already contributed to earnings disappointments at several companies, including Fuller and Procter & Gamble.
Mr. Milunovich and Gary Schieneman, an accounting analyst at Merrill Lynch, computed what these two benefits contributed to earnings at the technology companies they studied, including America Online, now AOL Time Warner Applied Materials Microsoft Sun Microsystemsems; Juniper Networks and Qualcommm.
Improvements in non-academic skills probably contributed to earnings gains.
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As a result of the anticipated cost savings and portfolio restructuring, Richmond believes the deal will contribute to earnings immediately.
HSBC relied on its large operations in Asia to contribute to earnings while businesses in the United States and parts of Europe struggled.
Solectron expects the merger to generate $60 million to $120 million in cost savings and extra revenue, and to contribute to earnings in the fiscal year ending Aug. 31, 2002.
Florida-based Rexall would immediately contribute to earnings per share, Numico said, adding that it expected initial cost savings of 25 million euros.
"We have looked at some assets like our sports teams" and assets that do not contribute to earnings before interest, depreciation, taxes and amortization, because they are owned jointly, he said.
They also spoke out against the expensing of option plans, adding that it contributes to earnings dilution of 5% to 10%.
This afternoon during a conference call Yahoo and Broadcast.com hosted to detail their alliance, Yahoo President Jeff Mallett promised that the acquisition of the streaming media company will begin contributing to earnings per share no later that one year after the deal's completion, expected to occur in late summer or early fall.
To be sure, continued economic recovery will contribute to earnings in more immediate ways as well: It will allow banks to set aside less money to cover loan losses, and dip into existing reserves.
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