Boringly solid is a bad thing?!?
IBM announced its 4Q 2004 earnings yesterday afternoon. The earnings were $1.80 per share, solidly beating the Street's projection of $1.76. Yet the stock dropped close to 2 points in the day since the results were reported. The reason? Apparently IBM wasn't exciting enough. Analyst Laura Conigiliaro from Goldman Sachs characterized the outcome as "another boringly solid quarter." Since when was solidity a bad thing in the business world? Generally beating both your revenue (by $.27 billion) and profit expectations is a good thing. But for some reason IBM investors (of which I am one) and executives are being punished by the market because the results weren't flashy enough? And people wonder why executives have incentives to take dangerous risks or act illegally.
posted by Dan Turkenkopf @ 6:32 PM
4 comments
4 Comments:
Great post, but post some more dude!
Hi,
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By the way, I think I've finally figured out why boringly solid was a bad thing. The analysts were looking for a groin-grabbingly solid quarter!
Work harder. Harder werken. Gan huo. Trevalla més. Trabaja más. Bishtar kar kon. Oh no, I can't remember the rest. What was it in korean again? Something that ended in hey ya. Guess I'll just have to listen to that song.
I want to say it's something like, Te shay ye me hey ya
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