IBM (IBM -6.5%) would've missed Q1 EPS estimates by $0.34, rather than $0.05, if not for a lower...

IBM (IBM -6.5%) would've missed Q1 EPS estimates by $0.34, rather than $0.05, if not for a lower tax rate, says BMO's Keith Bachman. Like others, Bachman is skeptical Big Blue's woes are solely due to execution, given weak results from peers (one can now add SAP to the list). "We think demand was perhaps weaker than we and the companies thought." Sterne Agee, however, is staying bullish precisely because it doesn't consider IBM's issues company-specific. Meanwhile, the WSJ is backing up CRN's report about the relatively low-margin x86 server unit being on sale. Morgan Stanley estimates the unit had 2012 sales of $4.9B. (previous) (transcript)

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Comments (9)
  • SoldHigh
    , contributor
    Comments (991) | Send Message
    It's hard to believe IBM just suddenly slipped regarding execution.


    Demand is key.
    19 Apr 2013, 10:04 AM Reply Like
  • rickraff
    , contributor
    Comments (319) | Send Message
    IBM reaffirmed fiscal 2013 guidance at $16.70. Therefore, the stock should be worth the same today as it was yesterday. They said some contracts were pushed back to Q2 and this has happened before. The sell off is an over reaction, and provides an opportunity to buy a blue chip stock at 2011 prices.
    19 Apr 2013, 11:34 AM Reply Like
  • Chester the Income Investor
    , contributor
    Comments (464) | Send Message
    now the time to buy this Buffett stock??
    19 Apr 2013, 12:43 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (474) | Send Message
    google would have missed if not for favorable tax rate also....
    19 Apr 2013, 01:21 PM Reply Like
  • scchan.2009
    , contributor
    Comments (215) | Send Message
    This should be considered a chance to enter/add a position. It was even reasonably priced for a long term position before the fall. Anyway, this is how the market works - overreaction.
    19 Apr 2013, 06:39 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13389) | Send Message
    IBM is executing well, it's the market that's slumping. IBM is simply saying, don't expect too much in a weakening market, sadly some won't admit that the business cycle is topping.
    20 Apr 2013, 02:09 PM Reply Like
  • apppp
    , contributor
    Comments (359) | Send Message
    Sector meets iceberg.
    20 Apr 2013, 06:35 PM Reply Like
  • apppp
    , contributor
    Comments (359) | Send Message
    Also I think a lot of "tech" are chasing stuff that doesn't really bring any earnings, not necessarily aimed at IBM but seems sector wide. Oh look its new technology but it doesnt really serve any purpose./
    22 Apr 2013, 02:21 PM Reply Like
  • Momintn
    , contributor
    Comments (6056) | Send Message
    At least IBM pays taxes while many companies do not.
    26 Apr 2013, 05:42 PM Reply Like
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