Technology company International Business Machines
Corp.(NYSE:IBM) is expected to continue its winning streak of reporting healthy
earnings for nearly a decade.
Analysts, on
average, are expecting earnings of $3.61 per share on revenue of $25.4 billion.
The earnings estimate excludes the costs of past
acquisitions and certain other items unrelated to IBM's on going business.
IBM earned $3.28 per share last quarter, after
subtracting certain items, on revenue of $26.2 billion.
The world's largest technology services company will
be announcing its results on Tuesday after market closes. The company has been
profitably pursuing its strategy of selling software and range of technology
services to businesses and government agencies.
The company follows a sound business strategy of
locking its customers into contracts which guarantees it regular payments so
that it has committed cash flows even during tough economic conditions.
Technology companies have been hit by slowing growth
in Europe and China where technology spends have been declining.
Now that IBM is no longer in the business of selling
personal computers, the sales slump in that segment is not having any impact on
the company.
Business software and technology services are high
margin business and this is working in the company’s favour.
These are all the factors due to which analysts are
confident that IBM's earnings for the three months ending September will at
least match the projections that influence investors' decisions on whether to
buy or sell a stock.
If IBM hits the target set by analysts, it will be the
39th consecutive quarter in which IBM's earnings have been higher than the same
time in the previous year.
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