IBM's net fell 30% in quarter to $877 million; shipping delays are blamed for results analysts say portend a mediocre 1990
Article Abstract:
IBM will post earnings of $877 million for the 3rd qtr, almost 30 percent lower than the 1988 figure. The reason cited by the computer company is a delay in shipping new high-end disk drives. That business accounts for about ten percent of IBM's annual $60 billion revenue. IBM also mentioned an increase in leasing, which helps business in the long run but actually cuts current revenue. In 1988, 3rd qtr earnings were $1.25 billion, or $2.10 a share. IBM remains optimistic about its future. Revenue rose in the US in both the 2nd and 3rd qtrs, and says that 'demand for IBM products continues to be good world-wide.' Analysts are not so optimistic. They believe that the product delays and leasing problems will continue into the 1st qtr 1990: IBM has no release date set for the disk drives, and the leasing division will continue to lose money because leasing prices are too low.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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IBM says profit for 3rd quarter, year will be well below analysts' forecasts
Article Abstract:
IBM reported that its earnings for the 3rd qtr, 1989, will fall well below analysts' expectations, due to delays in products, a customer shift towards leasing and the strength of the US dollar. IBM's stock fell, $6 to $111.50, in reaction to the news, and other stocks declined with it. Some analysts believe that IBM's problems could run deeper, and that the 4th qtr will be affected as well. The company expects analysts to cut their 3rd qtr estimates to $1.40-$1.80 a share, from $2.10-$2.30 a share. That would give them a substantial earnings decline from 1988 $1.25 billion, or $2.10 a share, inflated some by a 15-cent-a-share gain on the sale of stock in MCI Communications Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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IBM earnings increased 9.2% in first quarter; strength surprises analysts but some say company is still facing problems
Article Abstract:
IBM will post 1st qtr earnings of $1.04 billion, an increase of 9.2 percent over the same quarter in 1989. Revenue increased to $14.19 billion from $12.73 billion. Shareholder earnings will be $1.81 a share. IBM's experienced double-digit revenue increases in a sluggish US market. Mainframe and high-end disk drive sales were expected to increase over last year, when manufacturing problems limited sales in those areas. Although IBM expresses encouragement with its 1st qtr results and stock rose $3.75 upon the announcement, industry analysts still believe that IBM has to post similar success for the subsequent three 1990 quarters in order to be considered 'out of the woods.'
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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