IBM, profits below expectations – Macitynet.it
Profits below expectations for IBM. The failure to reach the profit target for the quarter was announced yesterday by Big Blue itself which set the new target for the current quarter at 66 cents per share, with profits between 1.65 and 1.75 billion dollars.
Most analysts and First Call reported forecasts for the quarter at 85 cents per share on $ 19.65 billion in revenue. The new target also significantly lower than that achieved in the same quarter of last year when IBM made a profit of 98 cents per share.
The news is particularly important because it is the first 'profit warning' issued by IBM since 1991. Against this figure during the day yesterday, the entire technology sector had several bearish gasps on Wall Street. IBM itself has lost 10% but many competitors and allies have also lost share in the list. It should be noted that the worst sector could be the semiconductor sector, which also deals with the production of PPC processors for Apple. Many analysts are actually debating some terms of the announcement. For example, they are wondering how much structural and strategic there is in it. In fact, it could be assumed that the profits below the forecasts are at least in part the result of what could be a new vision imposed by the new CEO Palimisano arriving in place of Gerstner. Others suspect that the tightening imposed by the supervisory commissions on financial statements, a direct consequence of the Enron case, could have led to a reduction in the room for maneuver in some accounting operations used in the past to 'strengthen' the financial statements. The official presentation of IBM's quarterly financial statements set for April 17, the same day that Apple will also present its quarterly financial statements.