IBM Earns $6.13 Per Share in Q4

Earnings from IBM ($IBM) are out. The company earned $6.13 per share for Q4 which was 14 cents more than the Street’s expectations. For the year, IBM earned $16.28 per share. They expect to earn at least $18 per share this year. Wall Street had been expecting $17.97 per share.

Diluted EPS:
GAAP: $5.73, up 12 percent;
Operating (non-GAAP): $6.13, up 14 percent;

Net income:
GAAP: $6.2 billion, up 6 percent;
Operating (non-GAAP): $6.6 billion, up 8 percent;

Pre-tax income:
GAAP: $7.0 billion, down 11 percent;
Operating (non-GAAP): $7.4 billion, down 8 percent;

Gross profit margin:
GAAP: 51.7 percent, down 0.1 points;
Operating (non-GAAP): 52.6 percent, up 0.3 points;

Revenue of $27.7 billion, down 5 percent, down 3 percent adjusting for currency;
Software, Services and Global Financing each grew, adjusting for currency:
Software up 3 percent, up 4 percent adjusting for currency;
Services down 2 percent, up 1 percent adjusting for currency;
Global Financing revenue flat, up 3 percent adjusting for currency;
Systems and Technology revenue declined 26 percent, down 25 percent adjusting for currency;
Services backlog of $143 billion, up 2 percent, up 5 percent adjusting for currency;
Free cash flow of $8.4 billion.

Full-Year 2013:

Diluted EPS:
GAAP: $14.94, up 4 percent;
Operating (non-GAAP): $16.28, up 7 percent;
Operating (non-GAAP) excluding second-quarter workforce rebalancing charges, $16.99;
Net income:
GAAP: $16.5 billion, down 1 percent;
Operating (non-GAAP): $18.0 billion, up 2 percent;
Pre-tax income:
Software, Services and Global Financing each increased segment profit:
Software: $11.1 billion, up approximately $300 million;
Services: $10.2 billion, up more than $250 million;
Global Financing: $2.2 billion, up more than $100 million;
Systems and Technology segment profit declined $1.7 billion, to a loss of more than $500 million;
Revenue of $99.8 billion, down 5 percent, down 2 percent adjusting for currency;
Business Analytics revenue of $15.7 billion, up 9 percent;
Smarter Planet revenue up approximately 20 percent;
Cloud revenue of $4.4 billion, up 69 percent:
Fourth-quarter annual revenue run rate of more than $2 billion delivered as a service;
Free cash flow of $15.0 billion.

Full-Year 2014 Expectation:

GAAP EPS of at least $17.00. Operating (non-GAAP) EPS of at least $18.00 compared with $16.28 for 2013, an increase of more than 10 percent.

IBM (IBM) today announced fourth-quarter 2013 diluted earnings of $5.73 per share, compared with diluted earnings of $5.13 per share in the fourth quarter of 2012, an increase of 12 percent. Operating (non-GAAP) diluted earnings were $6.13 per share, compared with operating diluted earnings of $5.39 per share in the fourth quarter of 2012, an increase of 14 percent.

Fourth-quarter net income, which includes benefits from tax audit settlements, was $6.2 billion compared with $5.8 billion in the fourth quarter of 2012, an increase of 6 percent. Operating (non-GAAP) net income was $6.6 billion compared with $6.1 billion in the fourth quarter of 2012, an increase of 8 percent.

Total revenues for the fourth quarter of 2013 of $27.7 billion decreased 5 percent (down 3 percent adjusting for currency) from the fourth quarter of 2012.

“We continued to drive strong results across much of our portfolio and again grew earnings per share in 2013. While we made solid progress in businesses that are powering our future, in view of the company’s overall full year results, my senior team and I have recommended that we forgo our personal annual incentive payments for 2013,” said Ginni Rometty, IBM chairman, president and chief executive officer.

”As we enter 2014, we will continue to transform our business and invest aggressively in the areas that will drive growth and higher value. We remain on track toward our 2015 roadmap for operating EPS of at least $20, a step in our long-term strategy of industry leadership and continuous transformation.”

Posted by on January 21st, 2014 at 4:12 pm


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