IBM Reports Higher Than Expected Earnings

By Richard Gibson
Oct 19 2010

IBM, known as Big Blue in the tech world, reported higher than expected earnings this morning. The tech giant beat all expectations with their new earnings report and stocks climbed throughout the day.

However, at the end of the day’s trading the stock prices had fallen once again. IBM has struggled in recent years with failing numbers. They have recently opened up new divisions that are allowing greater profit margins. They have looked for ways to stay ahead in the highly competitive tech market against such companies as IBM and Apple.

Before the end of trading stocks in IBM had risen to the highest level that the company has ever seen on the report that IBM will likely return nearly $11.40 per share this year. This is the highest proposed dividend that the company has ever paid to share holders.

IBM has made several key acquisitions in the market recently, including cloud computing companies and data storage firms. This has caused speculation in the market that IBM may be planning a mobile device in the near future.

IBM leaders have been tight-lipped about their future plans. However, recent reports have come out of the company that suggests a new line of mobile devices as well as certain purchases in the internet world.

Investors are speculating about the possible earnings report from IBM in the coming quarter. Trading is expected to increase this week as the company moves past the current report and forward with their plans for the new revenue.