International Business Machines Corp. (IBM) said Tuesday its board authorized the repurchase of $15 billion in shares, which could boost its earnings for 2008. The new plan is in addition to the $400 million left on a previous buyback plan. IBM said it plans to make about $12 billion in stock repurchases in 2008. The company said expected buyback activity could add about 5 cents a share to 2008 earnings, and now expects a profit of at least $8.25 a share for the year. Analysts surveyed by FactSet Research expect 2008 earnings of $8.21 a share.
IBM had boosted guidance back on January 18, when they reported earnings. I guess analysts were a bit skeptical and delayed making adjustments in their estimates....
IBM stock is up 3 to $113.14. It is breaking out above resistance it had in the $112 area.
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