IBM Hopes To Boost EPS With $1 Billion Stock Buy BackIBM Hopes To Boost EPS With $1 Billion Stock Buy Back

IBM on Monday said that it would use cash to repurchase up to $1 billion of its common stock in open market transactions.

The move is expected to be complete by February 2008. The repurchases were initially planned for March and April of next year, IBM said.

The company said it accelerated the program to take advantage of the stock market's current dip. IBM shares on Monday closed up about one-half of 1% -- to about $105.70. The stock is roughly 13% off of its 52-week high.

IBM said the buyback would have no effect on its fourth-quarter earnings and a "small benefit" for its 2008 earnings per share.

In April, IBM's board of directors signed off on $15 billion for the company's stock repurchase program. In May, the company announced a $12.5 billion share outstanding common stock buyback from three different banks. The stock repurchases are part of a larger effort by IBM to boost earnings per share.

"They are an element of our long-term road map for earnings per share growth through 2010 and also represent a good value at today's prices," IBM CEO Sam Palmisano said in a statement.

By the end of September, IBM reported that it had approximately $1.7 billion remaining for stock repurchases from the April authorization.

Analysts are, on average, expecting IBM to post fourth-quarter earnings per share of $2.60 and 2007 earnings per share of $6.97 when the company reports its year-end numbers in January, according to Thomson Financial.