"International Business Machines (NYSE: IBM) provides a good mix of rising earnings estimates, worldwide exposure and a safe dividend," says analyst Alex Kolb from Zacks Research.
"IBM was incorporated in the State of New York in 1911 as the Computing-Tabulating-Recording Co., changing its name to International Business Machines Corporation in 1924.
"And with the strength of its global on-demand model, IBM is experiencing strong revenue growth in all geographies, with robust growth in emerging markets worldwide.
"The emerging BRIC countries of Brazil, Russia, India, and China together grew 18.0% (15.0% adjusted for currency) in 2008.
"In spite of concerns about the U.S. economy, IBM grew revenue domestically by 6% in the first quarter, 8% in the second quarter, and 3% in the third quarter of 2008. Although revenue fell by 2.0% in the fourth quarter, the full year 2008 revenue growth was 4.0%.
"Net income for the quarter was $2.3 billion, flat compared to the same quarter last year. With focus on expense management, diluted earnings for the quarter were $1.70, up 3.7% from $1.64 in the prior-year quarter.
"Total revenue of $21.7 billion was down 11.4% (down 4.0% when adjusted for currency) from $24.5 billion in the year-ago quarter. Revenue for the quarter was impacted by strong U.S. dollar and the global economic environment.
"Overall, in our view IBM provides a good mix of rising earnings estimates, worldwide exposure and a safe dividend. We believe IBM offers both stability and exposure to the eventual economic recovery."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
5-20-2009 @ 3:42PM
Jonathan said...
Dividend increases are clearly telegraphing your beliefs!