look, ibm has been buying back shares & cutting costs ahead of the quarter for decades to prop up earnings .....it isn't a temporary operational practice. it's just as permanent as the one-time......*every time* expense write offs that hpq takes every quarter.......these practices enable them to manage the balance sheet so they can *manage* to satisfy wall street expectations every quarter.....these are practices that are permanent and in no way should represent a healthy and principled financial state.....
they are not that bad , though Ginny did allude to choppy waters on the last QQ ... let's see how the Q2 signings
go , they should capture those that didn't get ink in Q1 ... if not , then expect the street to take big blue to
the woodshed , then load up their boats ...
Goldman lowered 2013 from its prior est. of EPS of $16.71 to $16.61 which is about a half of one percent .006.
The3 2014 Goldman est was $18.10 and it was lowered to $17.92 so that is about 1% lower.
Goldman's 2015 est went from $20.07 to $20.01 which is about 3/10 of 1%.
Goldman did lower its 12 month share price target from $220 to $200 so that's material.
Goldman upgraded IBM to a buy in late 2011 after Buffett bought in. So IBM's 2012 share price performance and thus far in 2013 have not been very good.
But there is nothing in Goldman's notes that would indicate a weak Q2 for IBM. In fact the CFO pretty much said it would be a beat because of deals that slipped into Q2 from Q1. So there's not going to be a warning. I don't think IBM has warned in the last 6-7 years -- They would probably not warn unless earnings are going to be off by 5% or more.I believe it warned in 2006.
This is (most likely) IBM's way of a pre-announcement. Don't think that Goldman analyst didn't get a little nod and a wink before that downgrade..(nothing conspiratorial about it..this is how it works)