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IBM (IBM): Q3 EPS of $3.62 in-line. Revenue of $24.75B (-5% Y/Y) misses by $630M. Expects 2012...

IBM (IBM): Q3 EPS of $3.62 in-line. Revenue of $24.75B (-5% Y/Y) misses by $630M. Expects 2012 EPS of at least $15.10 vs. $15.14 consensus. Shares -3.2% AH. (PR)
Comments (7)
  • Now comes the 'over-reacting crowd' who will sell shares, only to regret having done so at a later date. What a bunch of nit-wits. IBM is a SOLID LONG-TERM investment.
    16 Oct 2012, 04:33 PM Reply Like
  • All three of Warren Buffett's biggest holdings (KO,IBM,WFC) posted disappointing earnings, (with the exception of KO being in line). I know expectations aren't everything because these companies experienced some form of growth when compared to the previous year, and they are fundamentally good businesses with a "moat". Therefore in the long term these businesses should prosper and do well but it pains me to see these shares get hammered, especially Big Blue and Wells Fargo.
    16 Oct 2012, 06:20 PM Reply Like
  • The strong dollar excuse doesn't hold water. The question is whether negative revenue growth will continue as a trend.
    16 Oct 2012, 04:41 PM Reply Like
  • As a long term IBM holder I am not overly concerned. They still raise productivity and buy back shares to raise EPS each quarter for 39 straight quarters.

     

    The 5% drop in revenue does signal that IBM may have to expand their tent through small acquisitions as they have done in the past. The currency effect part of the drop will be reversed over time.
    16 Oct 2012, 06:14 PM Reply Like
  • You need to go listen to the conference call as they have a plan for growth. See slide # 14 or just read the article on Bloomberg Businessweek. Right now there is some weakness in N. America and Europe. Growth was good in Russia, China, and India.
    If you buy stocks when they sell off after earnings, you can make more money than if you buy stocks that have popped. This was in an article by Mark Hulbert on Marketwatch earlier in the year.
    I am not selling my IBM stock.
    16 Oct 2012, 06:54 PM Reply Like
  • Way to go Ginny, first quarterly report under your domain, perhaps if you tended to business more and less to THE VIEW we would be better off. Hopefully you will improve or you have a short term contract!
    16 Oct 2012, 09:39 PM Reply Like
  • The punch line is IBM has still beaten forecasts, I am really puzzled why share price would fall. I think it is more valid if IBM overvalued to begin with, but I don't think so as IBM runs very nice balance sheets. I definitely won't sell my shares for now.

     

    Anyway, I guess one can always resort to the argument that financial markets are irrational.
    16 Oct 2012, 10:08 PM Reply Like
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