IBM to buyback $15B in stock

IBM is raising the bottom end of its profit forecast for 2008 on the back of a new stock buyback plan, surpassing Wall Street's expectations.

The Armonk, N.Y.-based company said Tuesday it plans to buy back $15 billion worth of its stock, which will boost its earnings per share. IBM expects to spend $12 billion on the buyback this year.

IBM (IBM, Fortune 500) is forecasting a profit for the year of at least $8.25 per share. In January, the company said it expects to earn $8.20 to $8.30 per share.

Analysts are predicting a profit of $8.22 per share, according to a Thomson Financial poll.