During the second quarter, the Company repurchased 2.1 million shares of common stock for a total of $83 million. Year-to-date, the company repurchased 3.9 million shares for a total of $150 million.
Why? They could have used the 83 million for pay increases to motivate the troops. What a waste of money repurchasing stock!
"They could have used the 83 million for pay increases to motivate the troops. What a waste of money repurchasing stock!"
That would only amount to several hundred dollars per employee, so it would be an insulting pay raise, and certainly not a motivator.
83 millions in buy back, that could have been a $600.00 Christmas/Year end bouns. Buy backs should be illegal
Wondering if Michael will go the same way as the Atos boss Girad who has been chopped after 2 years, both guys so far didn't manage to turn around the companies see below.
Dxc also still running in cut mode instead of growth 2 years on.
"Two years into the role, Girard has now stepped down, with Pierre Barnabé and Adrian Gregory installed as interim co-Chief Executive Officers until Belmer takes office.
While Atos has not released details on why Girard is resigning, speculation in French media suggests that he has been ‘asked to leave’ following a string of setbacks that sent Atos’ share price down by mre than 40% this year."
@1ymx+1dDtoCat - insightful analysis - thanks for posting.
Even the previosly much highlighted book to bill fell below one, that is on reduced turnover of 4 billion for the quarter. How much lower can the turnover or book to bill go?
Turnover was lower than forecast by Mike in the previous earnings statement, so that's quite poor.
Still no dividends in sight for shareholders, there's better shares out there, than one which can't even be confident in itself of delivering a dividend.
Share price in decline.
They have tried all the tricks in the game to cut costs.
Staff screwed as much as possible, costs cut to minimal pay raises.
Mass exodus of staff with a very high attrition rate out of control and vacancies giving further cost savings. But this means demoralised staff that aren't going to go the extra mile if they are aren't paid fairly.
Savings on loan interest re negotiated to much lower rates after reduction in debt after sell offs (Medical division)
Big savings through shutdown of buildings and costs put onto staff through virtual working (building, heating,lighting,security,rates,internet,building maintenance, facilities costs). Now staff have to cover all these costs.
There only so much saving and cutting that you can do. Growth is the answer.
After 2 years it's become clear these people can't grow the company or change the middle management who are so lethargic at growth that if they are presented with organic growth they don't posses the skills to take them up. The Middle don't want to grow the company as it involves effort and skills.
If Mike had succeded we would be seeing book to bill of over 1.5 every quarter easily.
I think there's going to be some big changes within the next 6 months as shareholders won't take much more of this.
Usually a new Exec is expected to turnaround after 18 months, and there's been no turnaround so far in the decline.
Mike you've got 2 quarter's to sort out staff pay to incentivize staff and sort out the middle layer to be focusing on growth.
Now the exodus could begin! Senior board/execs perhaps having previously done well from share allocation and dividend income - will sense that it will never return!
Perhaps not before Christmas, but after time to think over the holidays, execs could be timing exits...
How many consecutive quarters can a company shrink revenues before investors see that the emporer is Na--d!
Share buy backs are a total waste of money. They benefit short term holders of the shares... Guess who that is. They benefit in two ways, one raising the share price meaning they hit their bonus targets and two because their bonus in shares is worth more.
I don't understand why the shareholders don't see it as money wasted... Because it doesn't deliver long term value.
Look at the billions spent on it by M1... Where did that go?
Good strategy from the CEO, Board level to keep share price high in possibly attracting more rivals from bidding from the company in future but bad long term as potentially debt is building within the company and money is taken away from reinvesting within the company - areas such as employee pay, training and building capabilities in existing / new technologies.
Reckon that the board and CEO ( like others in NYSE ) could be attracting further share holders in buying and investing in the company / brand along with attracting rivals to partially / fully taking over / merging with another like for like brand.
its the only way they can keep the share price above water. Good to see its now at a market cap of $8.2B so nearly $2B lower than what ATOS offered for it 9 months ago
As for the results, another stellar quarter - revenue down 11.6% ($520M) from last year and for good measure the forecast shrinkage for the remainder of this year has been increased by a further $200M.
GBS is the business unit on the naughty step this quarter with a spectacular 1/6 shrinkage in revenue.
Never mind "organic growth" is forecast in 2024 so only have to hang around another couple of years or so - what else can happen in that time ?