While much of the tech sector is bemoaning a sluggish economy, Big Blue sees blue skies ahead. IBM on Wednesday announced positive preliminary earnings for the third quarter of 2008.
IBM said earnings per share were at US$2.05 for the quarter, up 22 percent from the same period last year. Net income rose 20 percent to reach US$2.8 billion, while revenue rose 5 percent to US$25.3 billion.
"It is very nice to see some positive news, not just for IBM but for--to a degree--the tech space overall, given the downdraft we have seen in recent weeks," Chuck Jones, a technology analyst for Atlantic Trust Private Wealth Management, told Reuters.
IBM is also optimistic about results for the rest of the year. In its statement, the company reaffirmed its outlook for the full year, saying it continues to expect earnings per share of at least US$8.75 for the fiscal year 2008, showing growth of 22 percent over 2007.
Big Blue said its year-to-date free cash flow was approximately US$6.4 billion at the end of the quarter and its cash balance was US$9.8 billion.
"For companies to be reaffirming their outlook through the end of the year is h-u-g-e," Mike Holland, chairman of investment company Holland & Co., told Reuters.
"In this environment, the combination of meeting current expectations but also reaffirming their outlook is an incredible performance," he said. "You made my evening," he told Reuters.
This article was first published as a blog on CNET News.com.
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