UAL profit sharing
08-30-2016 | 02:31 PM
#31
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well, actually, eps is simply earnings divided by shares. and earnings is simply net income - or profit. and profit sharing is tied, amazingly, to profit
so not sure what youre tryin to say there
the forecast eps are forecasts, though. and our ps will be based on the actual (pre-tax, pre-special charges) earnings, not calculated until well after Dec 31
so not sure what youre tryin to say there
the forecast eps are forecasts, though. and our ps will be based on the actual (pre-tax, pre-special charges) earnings, not calculated until well after Dec 31
The actual PS number used is spelled out in he contract and it is calculated at the end of each QTR. So, we already should know how we're doing in Q1 and Q2 compared to last year.
08-30-2016 | 04:31 PM
#32
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08-30-2016 | 05:00 PM
#33
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possibly. but "the number of shares" is not a specific enough concept. there are authorized shares, issued shares, outstanding shares, treasury shares, and probably other categories I can't think of right now. when the co buys back outstanding shares, they become treasury shares, and possibly the divisor in eps (ie, num of shares) stays fixed. but, the share price (and multiple of eps) might still go up because investors like dividends and share buybacks
corp fin is more complicated, and complex, and case-by-case, than can be fully covered or understood on a pilot forum. that's why teams of i bankers and securities lawyers work 2500 hrs a yr on the stuff
but to the OP, yes, eps has everything to do with our eventual ps deposit in March
08-30-2016 | 05:27 PM
#34
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From: IAH 320 CA
possibly. but "the number of shares" is not a specific enough concept. there are authorized shares, issued shares, outstanding shares, treasury shares, and probably other categories I can't think of right now. when the co buys back outstanding shares, they become treasury shares, and possibly the divisor in eps (ie, num of shares) stays fixed. but, the share price (and multiple of eps) might still go up because investors like dividends and share buybacks
corp fin is more complicated, and complex, and case-by-case, than can be fully covered or understood on a pilot forum. that's why teams of i bankers and securities lawyers work 2500 hrs a yr on the stuff
but to the OP, yes, eps has everything to do with our eventual ps deposit in March
corp fin is more complicated, and complex, and case-by-case, than can be fully covered or understood on a pilot forum. that's why teams of i bankers and securities lawyers work 2500 hrs a yr on the stuff
but to the OP, yes, eps has everything to do with our eventual ps deposit in March
Our profit sharing has EVERYTHING to do with pre-tax profit(PTP) and pre-tax margin(PTM). Specifically, 10% of PTP up to a PTM of 6.9% goes into the ps pool. 20% of PTP that is above PTM of 6.9% goes into the pool.
So if you want to get a bit closer to a real guess, you need to look at pre-tax profit for each quarter.
A quick glance at ir.united.com shows our performance thru the 2nd Q to be about 17% lower than 2015. I'm just looking at Income before Taxes.
So to those who think we'll get 17-18% vs. last year's 13%......keep on dreaming.
Last edited by Flyguppy; 08-30-2016 at 05:42 PM.
08-30-2016 | 05:59 PM
#35
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Any references to the 3rd and 4th quarter are estimates and could be way off.
08-31-2016 | 04:03 AM
#37
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You can sit here and argue that "eps has everything to do with our eventual ps deposit in March", but that's simply not true. You can use it as a wag, but that's about it. Too many variables.
Our profit sharing has EVERYTHING to do with pre-tax profit(PTP) and pre-tax margin(PTM). Specifically, 10% of PTP up to a PTM of 6.9% goes into the ps pool. 20% of PTP that is above PTM of 6.9% goes into the pool.
So if you want to get a bit closer to a real guess, you need to look at pre-tax profit for each quarter.
A quick glance at ir.united.com shows our performance thru the 2nd Q to be about 17% lower than 2015. I'm just looking at Income before Taxes.
So to those who think we'll get 17-18% vs. last year's 13%......keep on dreaming.
Our profit sharing has EVERYTHING to do with pre-tax profit(PTP) and pre-tax margin(PTM). Specifically, 10% of PTP up to a PTM of 6.9% goes into the ps pool. 20% of PTP that is above PTM of 6.9% goes into the pool.
So if you want to get a bit closer to a real guess, you need to look at pre-tax profit for each quarter.
A quick glance at ir.united.com shows our performance thru the 2nd Q to be about 17% lower than 2015. I'm just looking at Income before Taxes.
So to those who think we'll get 17-18% vs. last year's 13%......keep on dreaming.
08-31-2016 | 04:09 AM
#38
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08-31-2016 | 04:16 AM
#39
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From: UAL retired
possibly. but "the number of shares" is not a specific enough concept. there are authorized shares, issued shares, outstanding shares, treasury shares, and probably other categories I can't think of right now. when the co buys back outstanding shares, they become treasury shares, and possibly the divisor in eps (ie, num of shares) stays fixed. but, the share price (and multiple of eps) might still go up because investors like dividends and share buybacks
corp fin is more complicated, and complex, and case-by-case, than can be fully covered or understood on a pilot forum. that's why teams of i bankers and securities lawyers work 2500 hrs a yr on the stuff
but to the OP, yes, eps has everything to do with our eventual ps deposit in March
corp fin is more complicated, and complex, and case-by-case, than can be fully covered or understood on a pilot forum. that's why teams of i bankers and securities lawyers work 2500 hrs a yr on the stuff
but to the OP, yes, eps has everything to do with our eventual ps deposit in March
How to calculate and report EPS is clearly defined in many areas not least of which is GAAP accounting rules. Common Shares outstanding are listed under Stockholder Equity in the Q2 UAL 10-Q and are all that matter when reporting under GAAP.
323 mil Q2 2016 vs 365 mil Q4 2015
Share buy backs do not impact PS nor are EPS calculations relevant to PS.
Last edited by Sunvox; 08-31-2016 at 04:27 AM.
08-31-2016 | 04:58 AM
#40
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From: Narrow/Left Wide/Right
Huh?
How to calculate and report EPS is clearly defined in many areas not least of which is GAAP accounting rules. Common Shares outstanding are listed under Stockholder Equity in the Q2 UAL 10-Q and are all that matter when reporting under GAAP.
323 mil Q2 2016 vs 365 mil Q4 2015
Share buy backs do not impact PS nor are EPS calculations relevant to PS.
How to calculate and report EPS is clearly defined in many areas not least of which is GAAP accounting rules. Common Shares outstanding are listed under Stockholder Equity in the Q2 UAL 10-Q and are all that matter when reporting under GAAP.
323 mil Q2 2016 vs 365 mil Q4 2015
Share buy backs do not impact PS nor are EPS calculations relevant to PS.
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