International Business Machines Corp. (NYSE:IBM) released its latest quarterly earnings report after closing bell. The company’s GAAP earnings per share were $5.73, a 12% year over year increase. Non-GAAP earnings per share were $6.13, a 14% increase. Net income was reported to be $6.2 billion for the quarter, a 6% increase. Operating income was $6.6 billion, an increase of 8%. Revenue was $277 billion, a 5% decline. After adjusting for currency exchange rates, revenue was down 3%.
Analysts had been expecting the company to report earnings of between $5.99 and $6.03 per share on revenue of $28.26 billion. For the full year, they were expecting earnings of around $16.88 per share on revenue of about $100 billion.
Below is our 13F roundup for some high profile hedge funds for the three months to the end of March 2021 (Q1). Q1 2021 hedge fund letters, conferences and more The statements only include equity positions as 13Fs do not include cash and debt holdings. They also only include US equity holdings. Funds may hold Read More
Shares of IBM declined more than 2% after the results were announced.
Breaking down IBM’s results
International Business Machines Corp. (NYSE:IBM) reported a gross profit margin of 51.7%, a .1 point decline. Operating margin was 52.6%, a .3 point increase. The company saw its Software revenue increase by 3%, or 4% if adjusting for currency. Global financing revenue was flat but up 3% after adjusting for exchange. Services revenue fell 2% or 1% with currency adjustment. But where IBM’s revenue especially fell short was in Systems and Technology, where it declined 26^ or 25% adjusting for currency.
IBM reported $143 billion in Services backlog, which is a 2% increase, and $8.4 billion in free cash flow.
Examining IBM’s full-year results
For the full 2013 fiscal year, International Business Machines Corp. (NYSE:IBM) reported GAAP earnings per share of $14.94, a 4% increase. Non-GAAP earnings per share for the full year rose 7% to $16.28. Non-GAAP earnings excluding rebalancing charges taken in the second quarter were $16.99 per share.
The company’s net income for the full year was reported to be $16.5 billion, a 1% decline. Non-GAAP operating net income rose 2% to $18 billion for the full year. Revenue was $99.8 billion, a decline of 5%.
In pretax income, IBM reported higher profits in all but Systems and Technology, where profits fell $1.7 billion to a loss of over $500 million for the full year. The company reported a 20% increase in Smarter Planet revenue and a 9% increase in Business Analytics revenue. Cloud revenue rose 69% for the full year.
IBM also provided guidance for the full 2014 year, saying that it expects earnings per share of at least $17 and operating non-GAAP earnings of at least $18 per share.