Goldman Sachs Comments On IBM Q1

Goldman Sachs is commenting on International Business Machine's IBM “solid” first quarter results. “With stable backlog and ex-public short-term signings growth, our concerns over the long-term signings shortfall are mitigated,” Goldman Sachs writes. “We would become incrementally concerned if short-term signings weakened further though. IBM raised its 2011 operating EPS guidance to at least $13.15, from at least $13.00 previously. “Due to the strength in the key segments for the quarter, we are adjusting our estimates. Our 2011 revenue/ operating EPS forecast moves to $105.37 bn/$13.16 from $104.48 bn /$12.95. We also adjust our 2012/2013 revenue estimates to $109.28 bn/$113.36 bn from $108.36 bn/ $112.40 bn. Our 2012/2013 non-GAAP operating EPS estimates move to $14.60/15.92 from $14.46/$15.76.” IBM closed Tuesday at $165.40.