FT.com / Companies / IT - IBM results lift cloud over tech sector
IBM results lift cloud over tech sector
By Chris Nuttall in San Francisco
Published: January 14 2008 18:32 | Last updated: January 14 2008 18:32
Technology shares received an unexpected boost on Monday after IBM pre-announced earnings that showed it might defy an expected downturn in corporate tech spending.
IBM said it benefited from a weak dollar and growth in its business overseas in the fourth quarter. It reported earnings per share of $2.80, 24 per cent higher than a year ago. Revenues were 10 per cent higher at $28.9bn, with 6 percentage points coming from currency benefits.
The results were ahead of analysts’ estimates of profits of $2.60 per share on sales of $27.82bn, according to a Thomson Financial poll.
IBM shares rose 5.5 per cent in New York to $103.40, while the Dow and Nasdaq both rose about 1 per cent. Markets in Europe were also boosted by the news, closing higher after a three-day losing streak.
Analysts said IBM’s results had made traders view more positively an earnings season that continues with Intel, the world’s biggest chipmaker, reporting fourth-quarter results on Tuesday.
Sam Palmisano, IBM chief executive, said: “The broad scope of IBM’s global business – led by strong operational performance in Asia, Europe and emerging countries – drove these outstanding results.
“IBM is well-positioned as we begin 2008 as a result of our global business reach, solid recurring revenue stream and strong financial position.”
In November, John Chambers, chief executive of Cisco Systems, warned of a “softness” in orders from big US companies, creating fears that technology companies would suffer from corporate belt-tightening in IT spending.
But IBM’s optimistic pre-announcement suggested those with a global business could ride any downturn at home due to the strength of emerging markets.
Analysts remained cautious about its prospects. Goldman Sachs said a strong fourth quarter was largely expected seasonally and provided little clarity for technology spending in the first half of 2008. “We remain cautious for now given the weakening macro backdrop and the potential risk to estimates,” it said.
The software and services company recorded almost $100bn in worldwide revenues in 2007. It reported revenues of $98.8bn, an increase of 8 per cent on 2006, with 4 points accounted for by the weaker dollar.
IBM said full-year earnings per share were $7.18, including 5 cents per share relating to the sale of its Printing Systems Division in the second quarter, for an increase of 18 per cent on 2006.
Copyright The Financial Times Limited 2008
Tuesday, January 15, 2008
Monday, January 14, 2008
FT.com / Companies / IT - IBM results lift cloud over tech sector
FT.com / Companies / IT - IBM results lift cloud over tech sector
IBM results lift cloud over tech sector
By Chris Nuttall in San Francisco
Published: January 14 2008 18:32 | Last updated: January 14 2008 18:32
Technology shares received an unexpected boost on Monday after IBM pre-announced earnings that showed it might defy an expected downturn in corporate tech spending.
IBM said it benefited from a weak dollar and growth in its business overseas in the fourth quarter. It reported earnings per share of $2.80, 24 per cent higher than a year ago. Revenues were 10 per cent higher at $28.9bn, with 6 percentage points coming from currency benefits.
The results were ahead of analysts’ estimates of profits of $2.60 per share on sales of $27.82bn, according to a Thomson Financial poll.
IBM shares rose 5.5 per cent in New York to $103.40, while the Dow and Nasdaq both rose about 1 per cent. Markets in Europe were also boosted by the news, closing higher after a three-day losing streak.
Analysts said IBM’s results had made traders view more positively an earnings season that continues with Intel, the world’s biggest chipmaker, reporting fourth-quarter results on Tuesday.
Sam Palmisano, IBM chief executive, said: “The broad scope of IBM’s global business – led by strong operational performance in Asia, Europe and emerging countries – drove these outstanding results.
“IBM is well-positioned as we begin 2008 as a result of our global business reach, solid recurring revenue stream and strong financial position.”
In November, John Chambers, chief executive of Cisco Systems, warned of a “softness” in orders from big US companies, creating fears that technology companies would suffer from corporate belt-tightening in IT spending.
But IBM’s optimistic pre-announcement suggested those with a global business could ride any downturn at home due to the strength of emerging markets.
Analysts remained cautious about its prospects. Goldman Sachs said a strong fourth quarter was largely expected seasonally and provided little clarity for technology spending in the first half of 2008. “We remain cautious for now given the weakening macro backdrop and the potential risk to estimates,” it said.
The software and services company recorded almost $100bn in worldwide revenues in 2007. It reported revenues of $98.8bn, an increase of 8 per cent on 2006, with 4 points accounted for by the weaker dollar.
IBM said full-year earnings per share were $7.18, including 5 cents per share relating to the sale of its Printing Systems Division in the second quarter, for an increase of 18 per cent on 2006.
Copyright The Financial Times Limited 2008
IBM results lift cloud over tech sector
By Chris Nuttall in San Francisco
Published: January 14 2008 18:32 | Last updated: January 14 2008 18:32
Technology shares received an unexpected boost on Monday after IBM pre-announced earnings that showed it might defy an expected downturn in corporate tech spending.
IBM said it benefited from a weak dollar and growth in its business overseas in the fourth quarter. It reported earnings per share of $2.80, 24 per cent higher than a year ago. Revenues were 10 per cent higher at $28.9bn, with 6 percentage points coming from currency benefits.
The results were ahead of analysts’ estimates of profits of $2.60 per share on sales of $27.82bn, according to a Thomson Financial poll.
IBM shares rose 5.5 per cent in New York to $103.40, while the Dow and Nasdaq both rose about 1 per cent. Markets in Europe were also boosted by the news, closing higher after a three-day losing streak.
Analysts said IBM’s results had made traders view more positively an earnings season that continues with Intel, the world’s biggest chipmaker, reporting fourth-quarter results on Tuesday.
Sam Palmisano, IBM chief executive, said: “The broad scope of IBM’s global business – led by strong operational performance in Asia, Europe and emerging countries – drove these outstanding results.
“IBM is well-positioned as we begin 2008 as a result of our global business reach, solid recurring revenue stream and strong financial position.”
In November, John Chambers, chief executive of Cisco Systems, warned of a “softness” in orders from big US companies, creating fears that technology companies would suffer from corporate belt-tightening in IT spending.
But IBM’s optimistic pre-announcement suggested those with a global business could ride any downturn at home due to the strength of emerging markets.
Analysts remained cautious about its prospects. Goldman Sachs said a strong fourth quarter was largely expected seasonally and provided little clarity for technology spending in the first half of 2008. “We remain cautious for now given the weakening macro backdrop and the potential risk to estimates,” it said.
The software and services company recorded almost $100bn in worldwide revenues in 2007. It reported revenues of $98.8bn, an increase of 8 per cent on 2006, with 4 points accounted for by the weaker dollar.
IBM said full-year earnings per share were $7.18, including 5 cents per share relating to the sale of its Printing Systems Division in the second quarter, for an increase of 18 per cent on 2006.
Copyright The Financial Times Limited 2008
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