IBM Doing Just Fine Without All Those Employees It Sacked, Redux
by John Paczkowski
Posted on July 16, 2009 at 2:18 PM PT
IBM had very good second quarter, all things considered. The company reported quarterly earnings that trounced analysts’ estimates and raised its full-year earnings forecast.
Earnings were $2.32 per share, up from $1.97 per share in the same period last year, and well above the $2.02 per share the Street was looking for. Sales were $23.25 billion, lower than the $23.59 billion predicted by analysts, but second-quarter net income was $3.1 billion, up 12 percent year-over-year.
IBM, it seems, is generally weathering the econalypse pretty well (investor presentation). Indeed, the company raised EPS guidance for the full year, saying it now expects to earn at least $9.70 per share this year, compared to its previous forecast of $9.20. (Click on Highlights summary below to enlarge.)
“As a result of our strategic transformation, we have a very strong business model that is delivering superior earnings, cash, and client value,” said IBM CEO Sam Palmisano in a statement. “We are optimistic about how IBM is positioned to make the most of current growth opportunities as well as those that emerge as the economy recovers.”
I guess IBM’s practice of sacking U.S. employees and shifting their jobs to lower-cost countries is serving it quite well in this souring economy.
IBM (IBM) shares, which are already up more than a quarter this year, rose another 2.1 percent to $112.93 on the news.
