Company WatchANALYSIS OF BREAKING NEWS | International Business Machines (IBM) |  - Co. Watch is available via RSS feed
| Recession? What Recession? | 
|
February 26, 2008 - IBM (IBM-NYSE) announced its new $15 billion buyback and raised earnings estimates for 2008. That news feels like rain in the desert. While so many companies are struggling in this economic environment, leave it to ol' tried and true Big Blue to come through.
The reason for its stellar success is its global reach. It doesn't depend on the U.S. economy to make profits. While the U.S. is stumbling, China and India, among others, are thriving, bursting with opportunities. Management said the buyback would boost earnings by about a nickel a share, putting the new range for eps between $8.25 to $8.35, up from $8.20 to $8.30. It further stated that a major part of its earnings growth for the next 2 years will come from stock buybacks. The repurchases will be funded by operating cash flow, and the company will spend up to $12 billion this year on the stock program. Company Web site: www.hewlettpackard.com - Ted Allrich See also our Stock Buybacks page
|
Weekly Newsletter
printer-friendly format