IBM Beats Earnings, Ticks Up on Solid Overall Performance

International Business Machines IBM just released its latest quarterly results, posting earnings of $3.05 per share and revenues of $20 billion.

Currently, IBM is a Zacks Rank #3 (Hold), but that could change based on today’s results. Investors should note that our consensus estimate for IBM’s earnings has seen two negative revisions in the last month, ticking down a cent to $3.03 per share for the quarter. However, estimates for the current fiscal year went up a cent to $13.84 in the same period.

Shares of the company have risen 1.3% over the past month and were up 0.7% during regular trading hours today.

However, the stock is currently up about 1.6% to $146.76 per share in after-hours trading shortly after its earnings report was released.

IBM:

Beat earnings estimates. The company reported earnings of $3.05 per share, topping the Zacks Consensus Estimate of $3.03 per share.

Beat revenue estimates. The company saw revenue figures of $20 billion, surpassing our consensus estimate of $19.62 billion and up 4% year-over-year.

The company maintained the following financial guidance for the full year of fiscal 2018:

Non-GAAP diluted earnings per share of at least $13.80 and GAAP diluted earnings per share of at least $11.60. Operating (non-GAAP) diluted earnings per share exclude $2.20 per share of charges for amortization of purchased intangible assets, other acquisition-related charges and retirement-related charges as well as impacts from the enactment of U.S. Tax Reform.

"We delivered strong revenue and profit growth in the quarter, underscoring IBM's progress and momentum in the emerging, high-value segments of the IT industry," said Ginni Rometty, IBM chairman, president and chief executive officer. "More clients are engaging IBM on their journey to the cloud, and deploying IBM Cloud, Watson AI, analytics, blockchain and security solutions. This demonstrates IBM's unique leadership in providing innovative technology coupled with deep industry expertise, trust and security."

Strategic imperatives revenue over the last 12 months was $39.0 billion, up 15 percent (up 12 percent adjusting for currency). Total cloud revenue over the last 12 months was $18.5 billion, up 23 percent (up 20 percent adjusting for currency), with $8.2 billion from hardware, software and services to enable IBM clients to implement hybrid cloud solutions across public, private and multi-cloud environments, and $10.4 billion delivered as a service. The annual exit run rate for as-a-service revenue increased in the quarter to $11.1 billion, up 26 percent (up 24 percent adjusting for currency).

Here’s a graph that looks at IBM’s recent earnings performance:

International Business Machines Corporation Price and EPS Surprise

International Business Machines Corporation Price and EPS Surprise | International Business Machines Corporation Quote

Based in Armonk, NY, IBM provides advanced information technology solutions, including computer systems, software, storage systems and microelectronics. The company operates in more than 175 countries.

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