IBM Earns $2.54 Per Share

For Q1, IBM earned $2.54 per share which matched expectations. They also reiterated their full-year estimate of at least $18 per share.

Diluted EPS:
GAAP: $2.29, down 15 percent;
Operating (non-GAAP): $2.54, down 15 percent;
Net income:
GAAP: $2.4 billion, down 21 percent;
Operating (non-GAAP): $2.6 billion, down 22 percent;
Results include impact of approximately $870 million workforce rebalancing charge and nearly $100 million gain for the divested customer care outsourcing business;
Gross profit margin:
GAAP: 46.9 percent, up 130 basis points;
Operating (non-GAAP): 47.6 percent, up 90 basis points;
Revenue: $22.5 billion, down 4 percent; down 1 percent adjusting for currency, excluding divested customer care outsourcing business:
Software, Services and Global Financing each grew, adjusting for currency;
Software up 2 percent as reported and adjusting for currency
Services down 2 percent; up 2 percent adjusting for currency and excluding divested customer care outsourcing business
Global Financing up 3 percent, up 6 percent adjusting for currency
Systems and Technology down 23 percent as reported and adjusting for currency;
Services backlog of $138 billion, up 1 percent adjusting for currency and excluding divested customer care outsourcing business;
Business analytics revenue up 5 percent, up 6 percent adjusting for currency;
Cloud revenue up more than 50 percent:
For cloud delivered as a service, first-quarter annual run rate of $2.3 billion doubled year to year;
Expect full-year operating (non-GAAP) EPS of at least $18.00.
IBM (IBM) today announced first-quarter 2014 diluted earnings of $2.29 per share, a year-to-year decrease of 15 percent. Operating (non-GAAP) diluted earnings were $2.54 per share, compared with operating diluted earnings of $3.00 per share in the first quarter of 2013, a decrease of 15 percent.

First-quarter net income was $2.4 billion, down 21 percent year-to-year. Operating (non-GAAP) net income was $2.6 billion compared with $3.4 billion in the first quarter of 2013, a decrease of 22 percent. The results include the impact of a charge of approximately $870 million for workforce rebalancing and a gain of nearly $100 million for the divestiture of the customer care outsourcing business, consistent with the company’s full-year guidance in January 2014.

Total revenues for the first quarter of 2014 of $22.5 billion were down 4 percent (down 2 percent, adjusting for currency; down 1 percent, excluding the customer care outsourcing business) from the first quarter of 2013.

“In the first quarter, we continued to take actions to transform parts of the business and to shift aggressively to our strategic growth areas including cloud, big data analytics, social, mobile and security,” said Ginni Rometty, IBM chairman, president and chief executive officer.

“As we move through 2014, we will begin to see the benefits from these actions. Over the long term, they will position us to drive growth and higher value for our clients.”

First-Quarter GAAP – Operating (non-GAAP) Reconciliation

First-quarter operating (non-GAAP) diluted earnings exclude $0.25 per share of charges: $0.16 per share for the amortization of purchased intangible assets and other acquisition-related charges, and $0.09 per share for retirement-related charges.

Full-Year 2014 Expectations

IBM expects full-year 2014 GAAP diluted earnings per share of at least $17.00, and operating (non-GAAP) diluted earnings per share of at least $18.00. The 2014 operating (non-GAAP) earnings expectations exclude $1.00 per share of charges for amortization of purchased intangible assets, other acquisition-related charges, and retirement-related charges.

Posted by on April 16th, 2014 at 4:13 pm


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