Technology giant IBM has reported an 8.28% growth in net profit for the June quarter for current fiscal against $3.38 billion in the year ago period.Total revenue rose 12% vis-a-vis the year ago period to $26.7 billion.
IBM has raised its earning guidance for the full year to at least $13.25 per share from the earlier estimate of $13.15.
The stock reacted positively to the result and closed up 5.6% on Tuesday's trade to close at $185.21. At an estimated EPS of $13.25 for the current fiscal the stock is available at a PE multiple of 14 times which is a reasonable valuation and should generate at least 10% upside from the current levels in 1 year time frame.
IBM's market value at the current market price is $224.3 billion.
IBM's market value at the current market price is $224.3 billion.
No comments:
Post a Comment