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: EU Parliament votes to break up Google

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

EU Parliament votes to break up Google

5 hours ago

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

9 hours ago

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.