IBM profit rose 10% in 3rd period, topping estimates, amid robust sales
Article Abstract:
IBM exceeded analysts' expectations by reporting a 10% gain for the 3rd qtr 1998. The computer giant listed a profit of $1.49 billion, or $1.56 a diluted share, compared to the 3rd qtr 1997's $1.36 billion, or $1.35 a diluted share. A First Call survey of analysts had predicted per-share earnings of $1.53, but IB failed to match the 'whsiper' figure of $1.60. An unexpected 8% sales growth, coupled with continued strength by its computer services subsidiary, contributed to the results. Quarterly revenue also jumped from $18.61 billion in the 3rd qtr 1997 to $20.1 billion in the 3rd qtr 1998. IBM credited its higher earnings to fewer outstanding shares as well as a company tax-rate decline from 31.5% in 1997 to 30% in 1998. CFO Douglas Maine cautioned investors that weaknesses overseas and in the semiconductor business will conflict in the short term with IBM's overall competitiveness.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Cable companies face a debt-strewn superhighway; sector requires $20 billion to $43 billion to upgrade its infrastructure
Article Abstract:
Mediocre credit ratings could severely hamper efforts by cable television companies to build the infrastructure necessary to garner a piece of the potentially lucrative interactive, multimedia superhighway. Experts estimate that cable operators will have to spend $20 billion to $43 billion to upgrade their systems to meet future needs. But cable operators who piled up debt to string wire and acquire competitors now face stiff competition from telephone companies that find it easier to raise cash. Cable shares plunge as re-regulation takes effect. Moody's Investors Service Inc is reviewing and may downgrade its ratings of five cable companies. Some cable operators are eyeing alliances with phone companies. US West paid $2.5 billion in May 1993 for a 25.5 percent stake in Time Warner Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Firt-quarter profits rose 3.8%. Quarterly corporate profits survey
- Abstracts: U.S., Iraq trade fire in northern 'no-fly zone.' (includes related articles) U.S. planes skirmish with air defenses
- Abstracts: The newsboy problem with multiple discounts offered by suppliers and retailers. Determining order quantity and selling price by geometric programming: optimal solution, bounds, and sensitivity
- Abstracts: Tax credits: business and personal. 2003 tax information of interest. Tax facts and compliance: for you and advisers
- Abstracts: Governance, ownership, and corporate entrepreneurship: the moderating impact of industry technological opportunities