Can IBM Keep Earnings Hot?: Crafty financial moves are losing their clout

Can IBM Keep Earnings Hot? Crafty financial moves are losing their clout

As IBM Chairman Louis V. Gerstner Jr. prepares to retire at yearend, he can claim credit for one of the most dramatic corporate rescue missions in history. Still, Gerstner cannot escape nagging concerns that he managed this feat in part by bolstering earnings through creative financial steps. Critic...

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Bibliographic Details
Published in:Bloomberg businessweek (Online) no. 3778; p. 58
Main Author: Spencer E. Ante, with David Henry, in New York
Format: Magazine Article
Language:English
Published: New York Bloomberg Finance LP 15-04-2002
Subjects:
Accounting procedures
Computer industry
Corporate profiles
Earnings
Intellectual property
United States > US
Online Access:Get full text
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Summary:As IBM Chairman Louis V. Gerstner Jr. prepares to retire at yearend, he can claim credit for one of the most dramatic corporate rescue missions in history. Still, Gerstner cannot escape nagging concerns that he managed this feat in part by bolstering earnings through creative financial steps. Critics say he has pushed and pulled a variety of levers to squeeze double-digit growth in earnings per share while eking out an annual average of just 5% revenue growth. Now, the levers are starting to jam. The weakening of its earnings crutches carries enormous implications for IBM.
Bibliography:content type line 24
ObjectType-Feature-1
SourceType-Magazines-1
ISSN:0007-7135
2162-657X