IBM Takes It Up (IBM)

International Business Machines Corp.(NYSE: IBM), or IBM, just posted earnings of $1.98 EPS on $26.82 Billion in revenues. Estimates were $1.82 EPS on $25.92 Billion in revenues, according to First Call.

The company is also showing some longer-term goals.  IBM said "We feel good about our full-year outlook and our 2010 road map for $10 to $11 of earnings per share."

The company's guidance for 2008 EPS is now at $8.75, above the $8.56 estimate.

The key metric we like to look at is backlog, and the company noted its total services backlog sits now at $117 Billion.  For whatever it is worth, that is under the $118 Billion in each of the last quarters.

The company ended with $9.8 Billion cash at the end of the quarter. Shares repurchased in the second quarter were approximately $4.7 billion on a cash-paid basis and its total gross profit margin was 43.2%.

Jon C. Ogg
July 17, 2008