Second-quarter S&P 500 buybacks decreased 27.1% compared to the prior quarter, and fell 1.6% vs. to the second quarter of 2013, S&P Dow Jones Indices said in a research note Tuesday.
The firm said in the 12 months ended June 30, preliminary figures reveal S&P 500 companies increased their buybacks by 26.6% from the prior 12-month period in 2013, driven largely by the $159.3 billion spent in the first quarter of 2014 – the second largest quarter for buybacks on record.
The report noted companies also issued fewer shares, resulting in lower share counts and higher earnings per share.
Howard Silverblatt, senior index analyst said, “by reducing their share count, more companies are adding tail winds to their EPS” and that “during the second quarter, 23% of S&P 500 issuers reduced their year-over-year share count enough to push up their earnings per share significantly.”
