IBM beats estimates

Article Excerpt

IBM $127.65 (New York symbol IBM; Shares outstanding: 1.3 billion; Market cap: $165.7 billion; SI Rating: Above Average; Dividend yield: 1.7%) reported higher-than-expected earnings and revenue in its latest quarter. In the three months ended March 31, 2010, IBM’s earnings rose 13.3%, to $2.6 billion from $2.3 billion a year earlier. Earnings per share rose 15.9%, to $1.97 from $1.70, on fewer shares outstanding. Revenue rose 5.3%, to $22.9 billion from $21.7 billion. These figures beat the consensus estimates of $1.93 a share in earnings on revenue of $22.8 billion. The gains were mainly driven by higher revenue at IBM’s mainframe computer and software divisions. As well, the company gets two-thirds of its revenue from foreign markets, and the lower U.S. dollar enhanced the results of its overseas operations. Businesses should increase their spending on new computers and related services as the global economy continues to recover. As a result, IBM now feels it will earn $11.20 a share in 2010, up 1.8%…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.