IBM Could Come Up Big

In addition to a favorable currency environment, IBM's aggressive stock-buyback program will contribute to a strong bottom line, according to Shaw Wu, technology analyst for independent firm American Technology Research.

In February, Big Blue said it would ramp up its repurchase program, boosting it by $15 billion, most of it to be completed in 2008.

Wu stated in an April 10 note that sources say revenue momentum in the quarter just ended was being driven, in part, by IBM's newly released z10 mainframe. "Customers have been waiting for this new mainframe that is based on its new Power6 architecture."