IBM Earnings Report Shows Revenues Grew at 2% Which is Half of Analysts Expectations – Shares Slide 4% After Hours
Posted on | July 19, 2010 | No Comments
After the wonderful earnings report from Intel last week many felt that business spending on technology would prove to be a strong driver of economic growth and the overall market. That hope came to a grinding halt today as IBM saw revenue growth of only 2% for the quarter which is half of the 4% that analysts were expecting.
Profits came in ahead of estimates with earnings per share of $2.61 compared to estimates of $2.58. Earnings increased 12.5% over last year when Q2 earnings came in at $2.32. CEO Sam Palmisano stated that new hardware products were set to go on sale later this year which raised the forecast for 2010 to $11.25.
Even though IBM beat earnings expectations and raised their forecast for 2010 shares slide 4% in after hours trading. The revenue growth of 2% is seen as an issue and many investors were looking for a bigger number. When trading gets underway tomorrow it will be interesting to see how this tech giant is treated by Wall Street.
Over the last year, IBM has seen its stock price appreciate by 12.5%. Unfortunately, the stock is down about 1% year to date which is causing many investors to wonder if they are holding on to dead weight. With Intel reporting its best quarter ever the expectations were very high for IBM. We will see how the stock reacts during the rest of the week when other earnings reports are announced.
Author: Jesse Wojdylo
Ask Wojdylo Column – Financial, Entertainment and Sports news with a money spin.
Tags: ibm after hours > ibm analysts expectations > ibm earnings report > ibm revenues > ibm revenues grow > ibm shares fall > ibm shares slide
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