IBM will repurchase $15 billion of its own stock, it revealed today, leading the IT company to raise its profit forecast for the year to beat Wall Street predictions. The Armonk, NY-based computing giant will spend $12 billion on the buyback this year, the AP reports. The company told the Street that would help elevate its projected earnings-per-share for the year by five cents over previous estimates.
In January, IBM had predicted a 2008 profit per share between $8.20 and $8.30; in a survey, analysts put the profit at $8.22 per share. Today the company set $8.25 as the expected target for the year. In a prepared statement, CEO Sam Palmisano called the stock repurchases "one of the key elements of IBM's 2010 road map for earnings per-share growth," reports Marketwatch.