International Business Machines Corp. (IBM) Wins German Contract
World's largest computer-services company International Business Machines Corp. (IBM) and Siemens (SI) said Thursday that they jointly won a $9.3 billion, 10-year contract to manage and upgrade the non-military IT systems of Germany's armed forces. U.S. computer services group IBM will receive a 40% share of the deal, with SI getting the rest. The companies are expected to sign on the dotted line for the deal before the end of the year.
Under the contract, the two companies will co-manage the project. IBM will modernize data centers, while SI will be in charge of PCs, phone systems and servers at around 1,500 locations.
In October, IBM beat analysts' expectations for earnings per share with its third-quarter earnings, thanks largely to strength in software and hardware. Its service segment, however, came in a bit light. With the new contract helping in this area, a strong seasonal bias in the fourth quarter, and the fact that the stock is trading well under the industry average at 16.4x trailing 12-month earnings, IBM stock continues to represent an attractive risk/reward opportunity.
--Christine Marie Nielsen, Briefing.com
Under the contract, the two companies will co-manage the project. IBM will modernize data centers, while SI will be in charge of PCs, phone systems and servers at around 1,500 locations.
In October, IBM beat analysts' expectations for earnings per share with its third-quarter earnings, thanks largely to strength in software and hardware. Its service segment, however, came in a bit light. With the new contract helping in this area, a strong seasonal bias in the fourth quarter, and the fact that the stock is trading well under the industry average at 16.4x trailing 12-month earnings, IBM stock continues to represent an attractive risk/reward opportunity.
--Christine Marie Nielsen, Briefing.com
Labels: IBM, International Business Machines Corp.
posted by Stock Administrator @ 10:32 AM
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