Local Tech Wire

RESEARCH TRIANGLE PARK, N.C. – Will IBM (NYSE: IBM) report a strong quarter just as tech bellwethers Oracle and Intel have in recent weeks?

Economists, investors and analysts will be watching closely to see if IBM shows signs through its results that the recession is ending and tech spending continues its recent upward trend.

Analysts polled by Thomson Reuters believe IBM will report more revenues and higher earnings than Q2 for 2009 with revenues up nearly $1 billion to $24.2 billion and earnings climbing to $2.58 from $2.32.

“We expect the company to post another good quarter with year-over-year growth in revenue, margins and profitability,” Zacks reported in its earnings preview. “The Zacks Consensus Estimate for the quarter is pegged at $2.57 per share, which represents growth of 10.8% from $2.32 reported in the year-ago quarter.”

Analyst Amit Daryanani at RBC Capital Markets, however, said he expects a “likely subdued” quarter, according to MarketWatch.

IBM reported a strong first quarter.

IBM employs some 10,000 people in the Triangle area.

Tech earnings trends, upcoming reports

From The Associated Press, here is a summary of recent earnings reports for selected technology companies and what they reveal about the state of corporate spending and the overall economy:

  • Tuesday: Intel Corp. reported its largest quarterly net income in a decade as the chipmaker benefits from a stronger computer market and more sophisticated factories. Large corporations bought more computers that use Intel’s most expensive chips, a sign that businesses aren’t as stingy on upgrading employees’ personal computers.
  • Wednesday: ASML Holding NV, a Dutch supplier of tools that chipmakers need to make products, returned to profitability in the second quarter as demand rebounded sharply. The company says sales for the year should grow 10 percent to 15 percent over its 2007 record of 3.8 billion euros as chip makers make up for under-investment during the recession.
  • Thursday: Advanced Micro Devices Inc. reported a smaller second-quarter loss after reviving sales of computers that use its chips and undergoing a wrenching years-long effort to shed costs. AMD would have made money were it not for a loss related to its investment in factories it used to own but were spun off into a separate company a year ago.
  • Thursday: Google Inc.’s earnings misses analysts’ target. The letdown stems from Google’s expanding payroll and a run-up in the U.S. dollar that has been driven by fears that the euro will crumble if governments in Europe default on their perilously high debts.

Among technology companies’ earnings coming up:

  • Monday: IBM Corp., Texas Instruments Inc.
  • Tuesday: Yahoo Inc., Apple Inc.
  • Wednesday: EMC Corp., Qualcomm Inc.
  • Thursday: Microsoft Corp., Nokia Corp., Xerox Corp.
  • Aug. 11: Cisco Systems Inc.
  • Aug. 19: Dell Inc., Hewlett-Packard Co.
  • September: Oracle Corp.

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