"International Business Machines Corp. (NYSE: IBM) has 'surprised' the market with flawless execution and strong profits."
That's a quote from "IBM Has Found a Formula for Growth - Even During a Recession," written by stock analyst Horacio Marquez. I don't know this guy and don't know if he knows what he's talking about, but I hope he does.
Marquez says, "Despite the total meltdowns of the U.S. and global economies last October, IBM executed flawlessly and handily beat analysts' earnings estimates, expanding both its margins and its profit outlook for 2009." Others have also made positive evaluations of IBM's earnings report, such as "IBM posts earnings rise, sees strong growth in 2009" (MarketWatch), and the stock rose as a result ("IBM shares rise after earnings beat expectations" in MarketWatch). Marquez also says, "The virtue of IBM's model is that it has effectively transformed itself from the cyclical hardware company that gave it its name into a software-and-service-oriented firm that gives it a recurring revenue stream. In addition into this well-thought-out business model that concentrates on high-margin, value-added businesses." Yeah, I think that sounds like us.
Another point Marquez makes is that "the many stimulus plans being implemented around the world will no doubt increase demand in many of IBM’s product-and-service areas." This sounds like a nod to the "Smarter Planet" efforts IBM has been talking about.
Marquez also advises his nephew, who has an internship at IBM, to try to leverage it into a permanent job with the company because "It is a superb global company, with a bullet-proof business model and a balance sheet that gives them a huge sustainable competitive advantage." So, Marquez thinks IBM is a good place to work, too.
IBM's Stock Gets Some Love