IBM Q1 Profit Jumps 13%, Beating View (IBM)

By Dividend.com,  April 20, 2010, 09:05:47 AM EDT

I.T. giant International Business Machines Corp. ( IBM ) late Monday said its first quarter profit rose 13% from last year, helped by lower costs and higher revenue, beating analyst estimates.

The Armonk, NY-based company reported first quarter net income of $2.6 billion, or $1.97 per share, compared with $2.3 billion, or $1.70 per share, in the year-ago period. Revenue rose 5% from last year, to $22.9 billion.

On average, Wall Street analysts expected a smaller profit of $1.93 per share, on slightly lower revenue of $22.8 billion.

Looking ahead, the company boosted its full-year earnings forecast to $11.20 per share, which would beat current analyst estimates for $11.12 per share.

Despite the earnings beat, IBM shares fell $2.42, or -1.8%, in premarket trading Tuesday.

The Bottom Line
We have been recommending shares of IBM since Sept.16, when the stock was trading at $119.35. The company has a 1.66% dividend yield, based on last night's closing stock price of $132.23.

International Business Machines Corp. ( IBM ) is a "recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: IBM



Latest News Video

China Praised at African Union Summit
China Praised at African Union Summ...
Hagel to West Point Cadets: Sexual Assault Is a ‘Profound Betrayal'
Hagel to West Point Cadets: Sexual ...
France Begins First Large-Scale Withdrawal From Mali
France Begins First Large-Scale Wit...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.24 0.03  0.23%
FB $ 24.32 0.74  2.95%
SIRI $ 3.58 0.04  0.99%
GE $ 23.53 0.13  0.55%
PFE $ 29.04 0.07  0.24%
MSFT $ 34.27 0.12  0.35%
INTC $ 23.93 0.12  0.50%
P $ 16.43 0.73  4.25%