Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: Big Blue, Big on Earnings


Strengthen your portfolio in good times and bad.

IBM (IBM) released results for its fiscal second quarter after the bell. Big Blue earned $2.32 a share, beating analyst estimates by 30 cents and marking the highest earnings results for any first, second, or third quarter in the company's history, according to its accompanying press release.

Revenues, meanwhile, fell 13.3% year-over-year to $23.25 billion, largely inline with estimates of $23.59 billion. Gross margins came in at 45.5% in the quarter, largely driven by its software and services business. This compares with 43.2% in the same quarter the year before.

The company raised its guidance for the full fiscal 2009 year of at least $9.70 a share which compares with its previous expectations of $9.20 per share.

Shares are up nearly 2% in after-hours trading.

From the Bull Pen: Big Blue's stellar quarter was expected by IBM bulls. But would it really be that surprising to see a fake breakout to new highs and have the stock sell off? If you're thinking this, consider taking some profits and reloading near $105-ish level.

From the Bear Cave: We're right up against important resistance for the S&P at 950. But the burden likely lies more heavily on the bulls.

For more context on these levels, watch Podcast: Navigating Around S&P 950.

I can't wait for tomorrow. Not because its Expiration day, but because it's also Fat Friday. Have a great night!
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos