Question

Apple reported earnings per share of $2.36 for the 3-months ending June 30, 2018 on earnings of $11.519 billion. This compares with earnings per share of $1.68 on earnings of $8.717 billion during the same period from the prior year. What EPS would Apple have reported for the 3-months ending June 30, 2018 if the company had not repurchased shares?

Answer 1

June 30, 2017:

Net Income (Earnings) = $ 8.717 billion or 8717 million $

EPS (Earnings Per Share) = $ 1.68

Therefore, number of shares outstanding = 8717 / 1.68 = 5188.69 million

June 30, 2018:

Net Income = $ 11.519 billion or $ 11519 million

Actual EPS = $ 2.36. However, if the company had not repurchased shares, then the number of shares outstanding would have still been 5188.69 million

Therefore, EPS (in absence of repurchase) = 11519 / 5188.69 = $ 2.22002 ~ $ 2.22