IBM Doing Just Fine Without All Those Employees It Sacked, Redux
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.