IBM just posted its first-quarter earnings and we’re covering live.
The company reported earnings at $US2.54 per share, exactly matching analysts’ consensus estimate of $US2.54 EPS.
Revenues were $US22.48 billion, slightly below the $US22.8 billion expected by analysts.
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.
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.
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 11 per cent (down 5 per cent, adjusting for currency). Revenues in the BRIC countries — Brazil, Russia, India and China — decreased 11 per cent (down 6 per cent, adjusting for currency).
IBM’s stock was down around 3.5% in after-hours trading.
Here are more details from the press release:
– GAAP: $US2.29, down 15 per cent;
– Operating (non-GAAP): $US2.54, down 15 per cent;
– GAAP: $US2.4 billion, down 21 per cent;
– Operating (non-GAAP): $US2.6 billion, down 22 per cent;
– GAAP: $US3.0 billion, down 17 per cent;
– Operating (non-GAAP): $US3.3 billion, down 19 per cent;
Gross profit margin:
– GAAP: 46.9 per cent, up 130 basis points;
– Operating (non-GAAP): 47.6 per cent, up 90 basis points;
Software up 2 per cent as reported and adjusting for currency
Services down 2 per cent; up 2 per cent adjusting for currency and excluding divested customer care outsourcing business
Global Financing up 3 per cent, up 6 per cent adjusting for currency
Systems and Technology down 23 per cent as reported and adjusting for currency;
Services backlog of $US138 billion, up 1 per cent adjusting for currency and excluding divested customer care outsourcing business;
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