04-27-2015, 08:54 AM
I don't have the heart to register for another site at the moment, so I can't read the article. But based just on the headline, I'd say that yes, it is very important not to confuse EPS numbers that increase due to buybacks with EPS numbers that increase due to increasing revenue and profits. But in my opinion, while I'd always prefer increasing revenues and profits, increasing EPS through aggressive buybacks is not "fake" or negative. Only a profitable company can do this, and I think it is naive when people say that the company should just reinvest that money in the business. This is not always possible or prudent. Returning cash to shareholders through buybacks provides important discipline and does result in real EPS growth.