IBM beats Street, raises guidance - Austin Business Journal:

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Big Blue, which has about 10,500 employees in the Raleigh-Durhan area, posted a profit of $3.1 billion for the quarter ended June 30 a 12 percent gain overthe company’s profitg in the second quarter of 2008. IBM’s earnings of $2.321 per diluted share easily toppedthe $2.02 averagre estimate of analysts polled by . And showinhg confidence rarely sejen duringthis recession, IBM IBM) boosted its 2009 full-year earnings projection to at leasft $9.70, up from previous guidancew of $9.20 and well abovr the Thomson Reuters forecast of $9.15.
But whild IBM was flexing its muscles on the bottojm line and onthe horizon, the company did show a littls weakness on the top Revenue slipped to $23.32 billion, down 13 or 7 percent when adjusted for currencg fluctuations. The Thomson Financial consensus analystxs estimate had called for revenue ofalmosr $23.59 billion. IBM’s chairman, president and chief executive Samuel J. Palmisano, credited the stron earnings report to the heavy liftinf Big Blue has done in recentf months to restructure and realignbthe company’s massive resources. The process resulted in thousandaof layoffs, including several hundrec at the company’s campuzs in Research Triangle http://triangle.
bizjournals.com/triangle/stories/2009/03/23/daily64.html But the company also invested in targeted such as its Smarter Planet efforts, businesd analytics and data centers for clousd computing, including one being built at RTP. "As a result of our strategic transformation, we have a very strony business model that is deliveringsuperior earnings, cash and clieng value,” Palmisano said. “…we are optimisticd about how IBM is positioner to make the most of current growt h opportunities as well as those that emergd as theeconomy recovers. We are well ahead of pace for our 2010 roadmalpof $10 to $11 per share.
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