IBM just posted its fourth-quarter earnings shortly and we’re covering live.
The company reported earnings of $US6.13 per share, higher than analysts’ consensus estimate of $US5.99 EPS.
Revenues were $US27.7 billion, below the $US28.26 billion expected by analysts.
This is the third quarter in a row in which the company has beat on earnings but fallen short on revenue.
Looking forward, the company expects operating (non-GAAP) earnings per share of at least $US18.00 in 2014.
One point of note from the company’s earnings press release was this bit on IBM’s performance in what it considers its growth markets:
Revenues from the company’s growth markets decreased 5 per cent (down 2 per cent, adjusting for currency), and represents 23 per cent of IBM’s total geographic revenue. Revenues in the BRIC countries — Brazil, Russia, India and China — decreased 8 per cent (down 6 per cent, adjusting for currency).
IBM’s stock is down approximately 2.6% in after-hours trading.
We’ve got more details coming in from IBM’s press release:
– GAAP: $US5.73, up 12 per cent;
– Operating (non-GAAP): $US6.13, up 14 per cent;
– GAAP: $US6.2 billion, up 6 per cent;
– Operating (non-GAAP): $US6.6 billion, up 8 per cent;
– GAAP: $US7.0 billion, down 11 per cent;
– Operating (non-GAAP): $US7.4 billion, down 8 per cent;
Gross profit margin:
– GAAP: 51.7 per cent, down 0.1 points;
– Operating (non-GAAP): 52.6 per cent, up 0.3 points;
Software up 3 per cent, up 4 per cent adjusting for currency
Services down 2 per cent, up 1 per cent adjusting for currency
Global Financing revenue flat, up 3 per cent adjusting for currency
Systems and Technology revenue declined 26 per cent, down 25 per cent adjusting for currency
Services backlog of $US143 billion, up 2 per cent, up 5 per cent adjusting for currency
This is developing…