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... They may view any change in their pension plan as a manipulation of earnings to benefit management’s position for the IPO. ... This is going to allow for a short term pop in the earnings per share for 2004 which when viewed in comparison to the prior years, will appear as if the Company has had additional growth. ... For the necessary results in 2004, this could allow for the desired EPS for the year but management needs to be cognizant that this is not a recurring impact. ...
Furthermore, they are overloooking other indicators of future earnings such as number of store fronts vs. ...
Management needs to be focused on where they are seeing the 15% growth. In a year where a company has made acquisitions and used earnings to reinvest into the company’s future, it is normal to see a dip in EPS. ... Management could buy back and retire shares to reduce number of shares outstanding. ... They could understate expenses during the last period of the year intentionally to inflate earnings.
Approximate Word count = 1438
Approximate Pages = 5.8
(250 words per page double spaced)
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