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IBM to Buy Back $15B of Stock

Company raises its profit forecast

By Jonas Oransky,  Newser Staff

Posted Feb 26, 2008 3:04 PM CST
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(Newser) – 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.

The IBM booth is shown at the National Retail Federation convention in New York in this January 15, 2008 file photo. Wall Street reversed earlier losses and rallied Tuesday after IBM approved a $15 billion stock buyback, suggesting to investors that there are still some companies out there with financial...
The IBM booth is shown at the National Retail Federation convention in New York in this January 15, 2008 file photo. Wall Street reversed earlier losses and rallied Tuesday after IBM approved a $15 billion...   (Associated Press)
The IBM logo at the main campus in Research Triangle Park, N.C. is seen in this July 31, 2007 file photo. Computer server and software maker IBM Corp. on Monday, Jan. 14, 2008 reported preliminary fourth-quarter earnings from continuing operations rose 24 percent year-over-year to beat Wall Street expectations...
The IBM logo at the main campus in Research Triangle Park, N.C. is seen in this July 31, 2007 file photo. Computer server and software maker IBM Corp. on Monday, Jan. 14, 2008 reported preliminary fourth-quarter...   (Associated Press)
Offices of International Business Machines Corp. are shown in this Nov. 4, 2005 file photo, in New York. Wall Street advanced sharply Monday, with solid preliminary results from IBM encouraging investors to buy back into the stock market after last week's rout. (AP Photo/Mark Lennihan, File)
Offices of International Business Machines Corp. are shown in this Nov. 4, 2005 file photo, in New York. Wall Street advanced sharply Monday, with solid preliminary results from IBM encouraging investors...   (Associated Press)
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Wall Street • IBM • stock buyback • earnings forecast • analyst guidance • EPS • Sam Palmisano

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