Processing .....please wait.. 
The article has been forwarded.... 
Weak euro to affect IBM revenue
By siliconindia
|
Monday, 19 July 2010, 17:26 IST
The weak euro puts IBM in the danger of missing average Wall Street estimates for its second-quarter revenue, which estimates about 30 percent of its revenue. Although the strong growth in software and services may bolster IBM's second-quarter profit, the results on Monday are unlikely to trigger a share rally as investors hunt for higher-growth stocks such as Apple and VMware.
The average analyst forecast calls for IBM's second-quarter revenue to have grown 4 percent to $24.20 billion, according to Thomson Reuters I/B/E/S. Europe counts for around 30 percent of IBM's revenue, although not all contracts in the region are set in euros.
Some analysts said that average estimate did not sufficiently reflect a 9 percent rise in the dollar against the euro during the quarter.
"We're into one year of a three-year tech recovery cycle, so I want to 'overweight' smaller and faster-growing companies -- the speed boats, not the big tanker ships like IBM," said Gleacher & Co analyst Brian Marshall.
The weaker euro has been an issue for many large U.S. companies and several, including General Electric have reported higher-than-expected profits but flat or disappointing revenues.