Saturday, January 24, 2009
- "More good news, this time from IBM" read on
The Good News Economist
posted in General
at Sat, 24 Jan 2009 04:12:53 -0800
Big Blue Charges into 2009
Posted: 20 Jan 2009 10:16 PM PST
So last week you heard the good news from Intel.
And this week it is Big Blue (IBM) leading the technology earnings charge into the new year.
You’ll remember last week Intel suggesting that despite earlier (and eager press) reports, they were *not* going to layoff any workers. And that they fully expected healthy margin levels later in 2009.
Similiarly today, IBM announced that it sees a strong profit outlook in 2009. It easily beat the street earnings estimates for Q4. So strong was its profit report that it had some analysts in total disbelief: Peter Misek, an analyst with Canaccord Adams was stunned, "They just executed really well really, really, really well."
Those expecting IBM to announce widespread job cuts got no such news. Instead,overall head count is expected to keep rising as the company adds jobs in faster-growing regions and more profitable divisions.
The news should be no surprise. You’ll remember that incredible 12.5% rise in orders for computer products, and a 5.7% increase in orders for information technology goods in November. (See Leading Indicators)
Some times the good news is really hard to believe -- really, really, really hard to believe.
No Gloom here. Only Good News.