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Why is the consensus EPS for fiscal year 2009 lower than the Company’s EPS for fiscal year 2008?

April 26, 2017COMPANY consensus EPS fiscal year 2009 lower

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Why is the consensus EPS for fiscal year 2009 lower than the Company’s EPS for fiscal year 2008?

1 Answer

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The decrease in consensus EPS for fiscal year 2009 compared to fiscal year 2008 is due to the significant increase in the Company’s GAAP income tax expense for fiscal year 2009, most of which represents a non-cash expense (see Question #2 below). The Company’s effective GAAP tax rate is projected to increase to 40% in fiscal year 2009 from 20% last year, which results in an increase in our GAAP tax expense of more than 130%. 2.