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IBM Projects Positive Results for Its Third Quarter

IBM expects to announce some pretty sweet news in a sour economy when it details its third-quarter 2008 earnings on Oct. 16. The expected positive news includes a 22 percent increase in diluted earnings of $2.05 per share, plus a 20 percent higher net income of $2.8 billion.

Revenue will increase five percent, to $25.3 billion, in comparison with the third-quarter 2007 revenue figure, according to IBM's announcement.

Looking beyond the quarter, the company is expecting "full-year 2008 earnings per share of at least $8.75 or year-by-year growth of 22 percent," according to a corporate news release.

IBM will provide a detailed look at its results on Oct. 16, but IBM's Chairman, President and CEO Samuel Palmisano played up the potential good news.

In a prepared statement, Palmisano said that the preliminary findings "demonstrate that the combination of a steady base of recurring revenue and profits, investments for growth in emerging markets…and a flexible financial foundation give IBM a competitive edge in good times and tough times."

About the Author

Jim Barthold is a freelance writer based in Delanco, N.J. covering a variety of technology subjects.

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