Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, April 23, 2010

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP., $129.99, New York symbol IBM, fell slightly this week, even though it reported higher-than-expected earnings and revenue. In the three months ended March 31, 2010, IBM’s earnings rose 13.3%, to $2.6 billion from $2.3 billion a year earlier. Earnings per share rose 15.9%, to $1.97 from $1.70, on fewer shares outstanding. Revenue rose 5.3%, to $22.9 billion from $21.7 billion. These figures beat the consensus estimates of $1.93 a share in earnings on revenue of $22.8 billion. The gains were mainly driven by higher revenue at IBM’s mainframe computer and software divisions. As well, the company gets two-thirds of its revenue from foreign markets, and the lower U.S. dollar enhanced the results of its overseas operations. However, 60% of IBM’s revenue comes from its computer-services division, which saw its revenue fall 2%, excluding foreign-currency gains. As well, the company signed $12.3 billion of new service contracts in the latest quarter. That’s down 2% from a year earlier…