International Business Machines and Advanced Micro Devices released their latest earnings reports after closing bell tonight. IBM posted non-GAAP earnings of $4.84 per share and revenue of $22.06 billion. Analysts had been expecting earnings of $4.81 per share and $22.04 billion in revenue. In the fourth quarter of 2014, the compared posted $5.81 per share in earnings and $24.11 billion in revenue.
AMD reported losses of 10 cents per share and $958 million in revenue. Analysts had been expecting losses of 10 cents per share and $954.7 million in revenue. In the fourth quarter of 2014, the company posted adjusted earnings of cents per share on $1.24 billion in revenue.
IBM impacted by System x divesture
IBM’s GAAP earnings were $4.59 per share. The company’s decline in the non-GAAP result was due to 20 points of the previous year’s gain from the System x divesture. IBM had a services backlog of $121 billion at the end of the fourth quarter. Software revenue declined 11% year over year, while Hardware revenue fell 1%. The Global Financing segment saw a 15% decline in revenue
Shares of IBM edged upward by 0.3% to $128.14 per share in after-hours trading following tonight’s earnings announcement.
AMD’s results in line
AMD’s net losses were 13 cents per share, which was an improvement from last year’s 25 cents per share. The firm said the 10% decline in sales was the result of seasonally lower semi-custom systems-on-a-chip. Its gross margin was 30%, a 7 percentage point increase sequentially.
Revenue for the Computing and Graphics segment rose 11% sequentially and fell 29% year over year to $470 million. Higher sales for notebook processors caused the sequential increase, while the decline was caused by lower client processor sales. The Enterprise, Embedded and Semi-Custom segment saw a year over year 15% decline due to lower royalties on game consoles and lower server and embedded revenue.
Shares of AMD took a nosedive in after-hours trading, falling by as much as 7.69% to $1.80 per share following tonight’s earnings announcement.