Replies to post #4093 on The Rising Influence of Rising Affluence

[DewDiligence]

Thanks to emerging markets, IBM beats 1Q12 EPS consensus despite flat sales:

http://www.nytimes.com/2012/04/18/business/despite-flat-sales-ibm-earnings-beat-estimates.html

With its shift to higher-margin businesses and rapid expansion in emerging markets like China and India, I.B.M. has largely escaped the cyclical swings of the technology industry. The company’s profits increased throughout the financial crisis and recession.

The first quarter displayed how the breadth of the company’s business serves to deliver steady profits. The weakness in the hardware business was offset by higher profit margins in services and strong growth in emerging markets.

Sales in the BRIC countries were +9% YoY. Aggressive share buybacks also helped boost EPS.