Missed out looking at IBM results in the wake of some impressive numbers by Apple today. IBM also reported a strong Q3 posting revenue of $24.3 billion, up 3 percent from the Q3 in 2009. Income came in at $3.6 billion compared with $3.2 billion in Q3 of 2009, an increase of 12 percent.
IBM Third Quarter Earnings Announcement
- Diluted earnings per share of $2.82, up 18 percent;
- 31 consecutive quarters of EPS growth, 13 of last 15 at double digits;
- Full-year 2010 EPS expectations raised to at least $11.40;
- Net income of $3.6 billion, up 12 percent;
- Net margin of 14.8 percent, up 1.1 points;
- Revenue of $24.3 billion, up 3 percent as reported, 4 percent adjusting for currency;
- Growth markets revenue up 16 percent, 13 percent adjusting for currency;
- BRIC countries revenue up 29 percent, 26 percent adjusting for currency;
- Business analytics revenue up 14 percent;
- Systems and Technology revenue up 10 percent, 11 percent adjusting for currency;
- System z mainframe revenue up 15 percent; MIPS up 54 percent;
- Software revenue excluding divested PLM operations, up 4 percent, 6 percent adjusting for currency; up 1 percent including divested PLM operations;
- Services revenue up 2 percent, as reported and adjusting for currency;
- Services backlog of $134 billion, up $5 billion quarter to quarter, down $2 billion adjusting for currency, and flat year over year.
The only part which disappointed was the Services which is still struggling in the wake of slow recovery and no major wins. From Reuters:
IBM won fewer technology services deals than expected in the third quarter, sending its shares 3.7 percent lower, although it announced stronger profits and raised its full-year outlook
A decline in services and outsourcing contracts signed in the quarter, a key indicator of future revenue growth, prompted some investors to take profits after the shares hit a historic high of $143.04 earlier in the day.
Many analysts, however, said International Business Machines Corp was still a solid investment in the long term.
"It's like an eight-cylinder engine. Even if one is weak the others continue very strongly. And they're still going have a strong fourth quarter," said Collins Stewart analyst Louis Miscioscia.