(IBM) International Business Machines Keeps 2009 Guidance

September 9th, 2009

In a filing with the Securities and Exchange Commission yesterday, International Business Machines (IBM) reiterated its fiscal 2009 profit outlook of at least $9.70 per share. Management also said that IBM was well on course to deliver earnings of $10 to $11 per share in 2010.

With significant operating leverage, the company expects to continue expanding margins, helped by about $3.5 billion of savings from cost-cutting initiatives in 2009.

Shares of the company rose in early trading hours to $118.18 after closing at $117.46 on Friday on the New York Stock Exchange.

IBM expects to release third-quarter results on Oct. 15. The Zacks Consensus Estimate is pegged at $2.38 a share for the quarter and $9.77 for the full year, exceeding the company’s guidance of $9.70. Zacks estimates assume approximately 13.6% earnings growth and 2.1% sales growth.

IBM is the leader in the Software, Services and Storage business. With a shift to higher-margin software and services, the company raised its 2009 profit objective during the second quarter earnings call from its original forecast of $9.20 due to strong margin performance.

IBM’s second-quarter results beat the Zacks Consensus. Having focused on expense management, the pro forma EPS rose to a record $2.32, up 17.8% from $1.97 in the prior-year quarter. The Zacks Consensus estimate was $2.03 per share.

The server giant competes against Hewlett-Packard (HPQ), Sun Microsystems (JAVA) and Microsoft (MSFT). We maintain our Outperform rating on the stock based on strong fundamentals, substantial free cash flow, strong Services businesses and earnings momentum.

Zacks Investment Research
View original at: Zacks.com News Feed

More on this topic (What's this?)
Stock Wars: IBM vs. Intel (Wall Street Daily, 11/22/11)
What’s in Store in 2012 for IBM, Microsoft and Oracle’s Stock (Investment Underground » Page n..., 1/10/12)
IBM Stock Analysis (The DIV-Net, 12/2/11)
Hot Stocks: IBM's Diverse Business and Global Presence Should Boost First Quarter Earnings (Money Morning, 4/17/09)
Read more on International Business Machines at Wikinvest

Related Posts:

  1. (CPO) Corn Products International, Inc. – 2009 consensus rose to $1.88 from $1.80 in the last 30 daysCorn Products International, Inc. (CPO) has had a few tough quarters since I last wrote...
  2. (FLS) Flowserve Corporation – 2009 Guidance RaisedFlowserve Corporation (FLS) recently raised its full year guidance after sales rose 6% from the...
  3. ($IBM) International Business Machines – raised its full-year guidance 50 cents to $9.70 per shareInternational Business Machines (IBM) just reported another strong quarter, sending the company’s share price to...
  4. (EZPW) EZCORP – Given the revised 2009 guidance, covering analysts have been raising estimates in the last monthEZCORP, Inc. (EZPW), which operates 890 pay-day lending stores and pawnshops in the US and...
  5. (AZZ) AZZ Incorporated – 2009 Guidance Raised Again – Net income rose 34%AZZ Inc. (AZZ) reported third-quarter 2009 earnings on Jan 9 that beat Wall Street estimates...
  6. (AVAV) AeroVironment, Inc – reaffirmed its revenue guidance for fiscal 2009AeroVironment, Inc.’s (AVAV) share price has logged an impressive performance in 2008, advancing along a...


Search Posts by Tag: | | | | | | | | Diversified Computer Systems | Technology

RSS Feeds by Tag: Hewlett-Packard Company | HPQ | IBM | International Business Machine | JAVA | Microsoft Corporation | MSFT | Sun Microsystems Inc. | Diversified Computer Systems | Technology |

Other Posts by: | RSS Feed for this author