Feeds

IBM reaffirms bright profit picture

Sam Palmisano has to wear shades

Next gen security for virtualised datacentres

IBM is making the rounds of institutional investors in the next few weeks to make the case why its stock is undervalued, and has posted a supplemental 8K filing with the Securities and Exchange Commission this morning reaffirming its revenue and profit guidance for 2009 and 2010.

You can read the presentation that Big Blue's top brass will be giving here. By design, it doesn't tell you anything that El Reg has not already gone into detail about here way back in February. IBM's chief financial officer was then telling Wall Street it could bring at least $9.20 per share to the bottom line in 2009, and that it could hit between $10 and $11 in earnings per share in 2010.

When IBM posted its second quarter financials in July, while sales declined by 13.3 per cent to $23.25bn, net earnings were still up 12.2 per cent to $3.1bn. Given its cost controls and discipline on doing deals that bring in profits, IBM at the time raised its guidance, saying that it could hit $9.70 per share earnings in 2009.

EPS is a bogus metric, but IBM is obsessed with it, presumably because a lot of bonuses within the company are tied to it. Real earnings growth is what matters, especially when you are talking about a company like IBM, whose share buyback programs are akin to a crack habit. Investors like to see revenue growth when they see profits because then they believe, rightly or wrongly, that the profits are not just a one-time belt-tightening that will come back and bite a company later on.

Anyway, with its filing to the SEC today, IBM is reiterating its guidance for $9.70 EPS for 2009, which is the newsy bit. The company is even doing the math for Wall Street, showing that in the first half of 2009, the company has posted $45bn in sales, down 12 per cent, but has raised gross profits by 2.1 points to 44.5 per cent. It has also ratcheted up net income by 6 per cent to $5.4bn, and has achieved $4.02 in EPS, up 11 percent. That leaves $5.68 in EPS to go for the second half.

Wall Street basically yawned, with IBM's shares wiggling around $118 a pop on the news. It is hard to get excited by revenue declines and financial engineering on Wall Street these days, I guess. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.