IBM stock is victim of unmet expectations
Article Abstract:
IBM's shares have oscillated over the course of a few months, leading investors to change their predictions more than once. The company's shares dropped almost eight percent in the two days after IBM announced its profits in July 1992. The analysts had expected IBM to announce profits of $1.33 a share or more, but the company reported $1.25 a share. This led to a considerable reversal of optimism about IBM's success in its restructuring. IBM's shares subsequently dropped from $100.25 a share to $92.875. In the few preceding months, IBM's shares had risen from $81.625 to $100. IBM is now reorganizing at a time when other companies are cutting prices and incorporating sweeping changes in technology.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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Big Blue glimpses a rosy horizon; PC unit forecasts a solid profit in '93
Article Abstract:
The IBM Personal Computer Co, which lost $1 billion in 1992, registers break-even earnings in the first three months of 1993 and might even post a profit for the year. Robert Corrigan, IBM PC Co president, says that final financial figures will be available within a few weeks after Apr 2, 1993. The company's early profitability means that IBM can continue its aggressive sales strategy for its products. Specifically, the company can regain its share of the microcomputer market by slashing prices. The IBM subsidiary's early turnaround will also allow IBM to spin off the business ahead of schedule.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1993
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