Shares of International Business Machines Corp. (NYSE: IBM) are initially surging after earnings. Big Blue posted $1.65 EPS on $24.5 Billion in revenues, while estimates from First Call were $1.45 EPS on $23.71 billion in revenues. It also guided 2008 higher to $8.50 EPS, above its February guidance of $8.25 EPS. It also spent $2.7 Billion on stock repurchases in Q1.
The slowdown isn’t everywhere at all companies: Global Technology Services revenues up 17%, Global Business Services revenues up 17%, Software revenues up 14%, non-U.S. revenues now are 65% of total, even US revenues up 6%.
Sam Palmisano said 2008 is off to a good start and noted, "We feel good about the rest of the year." In the current climate, that’s all that is required.
The backlog is up $2 Billion from last year and flat sequentially with estimated services backlog (Strategic Outsourcing, Business Transformation Outsourcing, Integrated Tech Services, Global Business Services, and Maintenance) of $118 billion, adjusting for currency.
Shares rose almost 3% today to $120.47, and shares are up over 3% at $124.50 in after-hours immediately after the report. The prior 52-week high was $121.46.
Jon C. Ogg
April 16, 2008