Computer business IBM will be reporting its first quarter earnings and revenue today upon close of the market. Experts state that profit will most likely increase, while sales will be down simply because IBM sold its PC business to Lenovo Group and lost that portion of its reported revenue. Analysts estimated IBM will earn $1.04 per share on revenue of $20.7 billion, which is up from last year.
One of IBM’s most critical concerns this year will be its global services business, which comprises over 50% of the company’s revenue. According to analysts, IBM’s services business bottomed out in 2005 and can and will grow in 2006. Its first quarter bookings will reportedly be between $10.5 billion and $11.5 billion, with emphasis on long-term contracts.
Other experts state that IBM will reach revenues of $20.6 billion and could even exceed $1.08 per share. The company is gaining strength in its hardware business that includes servers and storage equipment. Many expect there will be a particularly strong showing by the computer business in the storage department.
Blogged By: Computer Consulting 101 Professional Kit