Monday, January 23, 2012

Investopedia: IBM's Mix Is Appealing, But The Valuation Isn't

Investing is a game of perpetual worry, so there's nothing especially novel about the concerns over the health of IT spending in 2012. The benefit of this to IBM (NYSE:IBM) is that the company is so diverse, so long as there's some spending it will be OK. Moreover, while that pesky "peak margins" argument/worry seems to be popping up again, the company's momentum in software seems encouraging for near-term results.

Good Enough Results for Q4  
IBM didn't blow out the doors for the fourth quarter, but they did well enough. Reported revenue rose about 2% and it would seem like most of the revenue shortfall vis a vis Wall Street estimates was a byproduct of foreign currency - something notorious difficult to model. Software led the growth (up 9%), while service revenue was OK (up 3%) and certainly better than hardware (down 8%).

Please click here for more:
http://stocks.investopedia.com/stock-analysis/2012/IBMs-Mix-Is-Appealing-But-The-Valuation-Isnt-IBM-ACN-HPQ-EMC-CSC-ORCL-NTAP0123.aspx

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