IBM buys back 8 percent of outstanding stock
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- May
- 29
IBM Corp. said it bought back 8 percent of its outstanding common stock for $12.5 billion, and it raised its 2007 profit forecast accordingly.
The company announced the deal after the close of trading yesterday. The buyback will contribute to earnings growth this year of 13 to 14 percent, up from the 11 percent originally provided during its first-quarter earnings report.
The new estimate includes the effect of the share repurchase program, adding 14 to 17 cents of EPS, the company said. The estimates exclude a gain from the previously-announced sale of IBM’s printer business.
IBM repurchased 118.8 million shares for an initial price of $105.18 per share. The repurchases are part of a $15 billion authorization on April 24 by the board of directors. IBM said it doesn’t expect to seek board approval for further buybacks before April 2008.
IBM stock closed yesterday at $105.91, up 73 cents. It’s up 9 percent for the year.
This entry was posted
on Tuesday, May 29th, 2007 at 6:42 pm by Jerry Gleeson.
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