IBM Sales Expected to Meet Forecast

By Jessica Davis  |  Posted 2009-07-16 Email Print this article Print
 
 
 
 
 
 
 

Technology giant IBM (NYSE:IBM) is expected to meet revenue expectations and may even beat expectations for earnings per share (EPS) when it announces its Q2 earnings this week. Chip giant Intel announced better-than-expected revenues earlier this week.

IBM (NYSE:IBM) is likely to meet revenue expectations when it announces its Q2 earnings later today, and may even beat expectations on earnings per share.
A weakening U.S. dollar will provide a boost to revenues for the second quarter and the rest of the year, says Bernstein Research in a report previewing IBM’s earnings. Other factors may also be at play.

"Our channel checks indicate that IT spending appears to have largely stabilized during Q2 in the U.S., although spending in Europe was more choppy," writes senior analyst Toni Sacconaghi in the Bernstein report.  

And while Bernstein’s discussions with CIOs indicate that IT budgets won’t loosen up in 2009, the stage is set for a material recovery in 2010. That echoes recent sentiments from other technology giants such as Intel, Dell, Hewlett-Packard and Microsoft.

Bernstein expects IBM to announce revenues of $23.6 billion, up from $23.4 billion from the same period a year ago and in line with consensus estimates. The firm expects IBM earnings per share of $2.07, above the consensus estimate of $2.02.

"In Q2 2009 IBM should benefit from previous workforce reduction actions, lower shared service cost and lower share count to help offset lower revenues," Sacconaghi writes.

Intel reported stronger than expected revenues and earnings earlier this week.

 
 
 
 
Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com
 
 
 
 
 
























 
 
 
 
 
 

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