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Last Update: 18-Oct-11 09:45 ET
IBM Tops Third Quarter Earnings Expectations; Raises Guidance
IBM (IBM $177.76 -8.83) reported third quarter earnings of $3.28 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $3.22.
Revenues rose 7.8% year/year to $26.16 billion versus the $26.25 billion consensus.
In fiscal year 2011, the company raised EPS guidance to at least $13.35, excluding non-recurring items, up from at least $13.25, versus $13.30 Capital IQ Consensus Estimate.
Gross margin +140 bps YoY to 46.8%. Total Global Services revenues increased 8% (2%, adjusting for currency). Global Technology Services segment revenues increased 9% (3%, adjusting for currency) to $10.3 billion. Global Business Services segment revenues were up 6% (flat, adjusting for currency) at $4.8 billion. Revenues from the Software segment were $5.8 billion, an increase of 13% (8%, adjusting for currency).
Software pre-tax income of $2.2 billion was up 12% year over year. Revenues from the Systems and Technology segment totaled $4.5 billion for the quarter, up 4% (1%, adjusting for currency) from the third quarter of 2010. Systems and Technology pre-tax income was $318 million, an increase of 8% year over year. The Americas' third-quarter revenues were $10.9 billion, an increase of 7% (6%, adjusting for currency) from the 2010 period. Revenues from Europe/Middle East/Africa were $8.0 billion, up 9% (flat, adjusting for currency). Asia-Pacific revenues increased 10% (1%, adjusting for currency) to $6.5 billion.
Revenues rose 7.8% year/year to $26.16 billion versus the $26.25 billion consensus.
In fiscal year 2011, the company raised EPS guidance to at least $13.35, excluding non-recurring items, up from at least $13.25, versus $13.30 Capital IQ Consensus Estimate.
Gross margin +140 bps YoY to 46.8%. Total Global Services revenues increased 8% (2%, adjusting for currency). Global Technology Services segment revenues increased 9% (3%, adjusting for currency) to $10.3 billion. Global Business Services segment revenues were up 6% (flat, adjusting for currency) at $4.8 billion. Revenues from the Software segment were $5.8 billion, an increase of 13% (8%, adjusting for currency).
Software pre-tax income of $2.2 billion was up 12% year over year. Revenues from the Systems and Technology segment totaled $4.5 billion for the quarter, up 4% (1%, adjusting for currency) from the third quarter of 2010. Systems and Technology pre-tax income was $318 million, an increase of 8% year over year. The Americas' third-quarter revenues were $10.9 billion, an increase of 7% (6%, adjusting for currency) from the 2010 period. Revenues from Europe/Middle East/Africa were $8.0 billion, up 9% (flat, adjusting for currency). Asia-Pacific revenues increased 10% (1%, adjusting for currency) to $6.5 billion.
