IBM expects earnings of $20 per share in 2015

May 12, 2010

(AP) -- IBM Corp. said Wednesday it expects to earn at least $20 per share in 2015, excluding some acquisition and pension-related costs - a forecast that reflects the growing importance of IBM's hugely profitable software division and "growth markets" outside the U.S. where demand for technology is surging.

The forecast would mean a growth rate for the company's earnings per share of about 12 percent each year over the next five years. IBM is expecting earnings of $11.20 per share this year, or $11.35 excluding items.

It also assumes that revenue will grow an average of five percent each year over the next five years, in constant currency. That was apparently encouraging to investors because some analysts have expressed concerns about IBM's ability to boost its revenue in a meaningful way going forward, considering how large the company has become.

IBM demonstrated in the that it's skilled in wringing more profits from its businesses even when they're hurting. Last year, IBM's total revenue fell 8 percent to $95.8 billion, a decline that would have been 5 percent were it not for currency fluctuations.

After the forecast was given at an investor meeting Wednesday, IBM shares jumped 4.6 percent, or $5.79, to close the regular trading session at $132.68.

IBM, which is based in Armonk, N.Y., has been benefited from healthier corporate spending on technology as the wanes. Its first-quarter climbed 13 percent from the year before to $2.6 billion. Revenue rose 5 percent at $22.9 billion.

Explore further: Apple counters talk it will shut Beats music service (Update)

More information: http://www.ibm.com/investor/events/investor0510/index.phtml

4 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

IBM's earnings indicate tech spending picking up

Apr 19, 2010

(AP) -- IBM Corp. said Monday its first-quarter profit jumped 13 percent, and the company offered evidence that corporate technology spending is rebounding after the recession.

IBM's profit rises 9 pct, revenue growth resumes

Jan 19, 2010

(AP) -- IBM Corp. said Tuesday that it managed a 9 percent increase in profit in the last quarter as the technology company's revenue grew for the first time in a year and a half.

IBM stumbles on 1Q sales dip; profit beats Street

Apr 20, 2009

(AP) -- IBM Corp.'s first-quarter results slipped as all its major business units suffered declines, but the company backed its bullish outlook for 2009 on Monday, reflecting its belief that a broad mix of services and software ...

IBM sees better profits for 2009 (Update)

Jul 16, 2009

(AP) -- IBM Corp. has proved a rare animal in the recession. Like everyone else, its sales have been hurt. Profit margins, though, have only gotten better and better, and on Thursday IBM ramped up its full-year earnings ...

Recommended for you

Line says no IPO this year

20 hours ago

The Japan-based operator of popular mobile messaging app Line said Monday it has decided not to go ahead with an initial public offering in Japan or overseas this year.

User comments : 0