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International Business Machines Corporation (IBM)

  • Aug. 6, 2013, 9:32 AM
    • IBM (IBM -2.1%) has been cut to Underperform by Credit Suisse.
    • Audience (ADNC +5%) has been upgraded to Buy by Benchmark after tumbling response to last week's disappointing guidance.
    • Vocera (VCRA +8.4%) has been upgraded to Outperform by Wells Fargo in response to its Q2 beat.
    • Responsys (MKTG +14.2%) has been upgraded to Outperform by Credit Suisse in response to its Q2 results and strong revenue guidance.
    • CDW (CDW +1.6%) has been assigned 7 bullish ratings and 2 neutral ones on underwriter coverage day.
    | Aug. 6, 2013, 9:32 AM | 4 Comments
  • Aug. 5, 2013, 11:08 PM
    • IBM is requiring a majority of its U.S. hardware workers to take a week off with lower pay, as it tries to slash costs in the face of weak sales.
    • IBM's hardware sales fell 17% Y/Y in Q1, and 12% in Q2. The company is coping with plunging UNIX server demand (taking a toll on Power system sales) and a secular shift in IT hardware spend towards Internet/cloud services companies opting for commodity, private-label gear.
    • Hardware made up 16% of IBM's 2012 revenue, but a smaller percentage of its op. profit. Sales -7.5% Y/Y to $18.3B, op. profit -25% to $1.23B.
    • IBM took a $1B restructuring charge in Q2, and reportedly held talks earlier this year with Lenovo about selling its x86 server business (sales -11% Y/Y in Q2).
    | Aug. 5, 2013, 11:08 PM | Comment!
  • Jul. 31, 2013, 9:14 AM
    • From IBM's Q2 10-Q: "In May 2013, IBM learned that the SEC is conducting an investigation into how IBM reports cloud revenue.  IBM is cooperating with the SEC in this matter."
    • No details are provided about the nature of the SEC's concerns. However, it's worth noting companies tend to receive payment for cloud software/services subscriptions up-front, and recognize this revenue over the life of the contract. The timing of such revenue recognition can present some accounting issues.
    • It was only last week that a federal court approved a settlement between IBM and the SEC over Chinese/Korean bribery allegations. A DOJ bribery investigation remains outstanding.
    • Shares -1.1% premarket.
    | Jul. 31, 2013, 9:14 AM | Comment!
  • Jul. 30, 2013, 2:10 PM
    • International Business Machines Corporation (IBM) declares $0.95/share quarterly dividend.
    • Forward yield 1.94%
    • Payable Sept. 10
    • For shareholders of record Aug. 9
    • Ex-div Aug. 7
    | Jul. 30, 2013, 2:10 PM | Comment!
  • Jul. 26, 2013, 1:20 PM
    A federal court approves a two-year old settlement between IBM (IBM -0.6%) and the SEC over bribery accusations in China and South Korea. The matter is separate from a DOJ investigation into the company's business dealings in Poland, Argentina, and Ukraine which might have breached FCPA rules.
    | Jul. 26, 2013, 1:20 PM | 2 Comments
  • Jul. 18, 2013, 12:45 PM
    IBM's (IBM +2.1%) Q2 EPS would've been roughly in-line with consensus if not for a favorable tax rate, Goldman and BMO point out. BMO, which in April estimated a lower tax rate boosted Q1 EPS by $0.29, sees Big Blue's freshly-lowered rate lifting 2013 EPS by $0.32. Management noted on the CC buybacks have lowered share count by 4% over the last 12 months. Much like Oracle and SAP, China weakness pressured Asia-Pac sales (-8% Y/Y); Japan is healthier, though a weak yen is taking a toll. Though Power system sales fell 25% Y/Y, IBM insists it's gaining UNIX server share. IBM expects Global Technology Services (-5% Y/Y) to return to growth in Q3 as it puts the restructuring of low-margin contracts behind it.
    | Jul. 18, 2013, 12:45 PM | 2 Comments
  • Jul. 17, 2013, 5:01 PM
    More on IBM: Huge buybacks ($3.6B) again boosted EPS. Also helping: a 140 bps Y/Y increase in gross margin to 49.7%. Hardware remained weak, -12% Y/Y (-17% in Q1). System x -11%, System z +10%, aided by refresh. Power systems -25%, storage -7%, chips +6%. Services -4% (-4% in Q1), IBM says it's focusing on high-margin projects. Backlog was $141B, flat Q/Q and +3% Y/Y. Software a bright spot, +4% (flat in Q1). Storage software grew 10%+, Tivoli +13%, WebSphere +10%, "social software" +22%. Financing revenue -6%. Americas -3%, EMEA flat, Asia-Pac -8%. "Cloud" sales +70% in 1H, analytics +11% in Q2. Free cash flow of $2.7B, $17B in last 12 months. Forex pressured results. Company no longer counting on "large divestiture" (likely System x unit) in 2H. IBM +1.2% AH. (PR)
    | Jul. 17, 2013, 5:01 PM | 2 Comments
  • Jul. 17, 2013, 4:13 PM
    IBM (IBM): Q2 EPS of $3.91 beats by $0.14. Revenue of $24.92B (-4.2% Y/Y) misses by $450M. $1B restructuring charge recorded. Expects 2013 EPS (exc. restructuring charge) of at least $16.90, above consensus of $16.64 and prior guidance of $16.70. Shares +3.6% AH. CC at 4:30PM ET (webcast). (PR)
    | Jul. 17, 2013, 4:13 PM | 10 Comments
  • Jul. 17, 2013, 12:10 AM
    Notable earnings after Wednesday’s close: ALB, AXP, CCK, CLB, CVA, EBAY, EPB, IBM, INTC, KMP , NE, PLXS, RLI, SCSS, SLM, SNDK,STLD, VMI, XLNX
    | Jul. 17, 2013, 12:10 AM | Comment!
  • Jul. 16, 2013, 5:35 PM
    Notable earnings after Wednesday’s close: ALB, AXP, CCK, CLB, CVA, EBAY, EPB, IBM, INTC, KMP , NE, PLXS, RLI, SCSS, SLM, SNDK,STLD, VMI, XLNX
    | Jul. 16, 2013, 5:35 PM | 2 Comments
  • Jul. 9, 2013, 10:00 AM
    IBM (IBM -1.3%) bolsters the virtualization capabilities of its System z mainframes by acquiring CSL International, an Israeli developer of software for managing System z virtual server environments. CSL's offerings work with both Linux and IBM's proprietary z/VM OS. Big Blue touts CSL's ability to make its mainframes more cloud-friendly - Google and Facebook are unlikely to be buyers, but some enterprises looking to build private or hybrid clouds could be. System z sales rose 7% Y/Y in Q1; that was seen as disappointing given a refresh cycle is underway (sales rose 56% Y/Y in Q4). (Goldman downgrade)
    | Jul. 9, 2013, 10:00 AM | Comment!
  • Jul. 9, 2013, 7:10 AM
    IBM is downgraded to Hold with $200 price target at Goldman. The team says the business model isn't working as hoped and the company may see intensifying pressure on its high-margin revenue streams in coming quarters. The 2013 EPS estimate is cut to $16.61 from $16.71; 2014 to $17.92 from $18.10. Shares -1% premarket.
    | Jul. 9, 2013, 7:10 AM | 5 Comments
  • Jun. 28, 2013, 10:24 AM
    UBS and Raymond James downgrade Accenture (ACN -13.2%) following an FQ3 revenue miss market by light consulting sales/orders, and soft guidance. UBS' Steve Milunovich, who now rates shares Neutral: "With Oracle and Accenture missing, enterprise demand appears to remain weak, which probably means a soft earnings season for large computer names." He thinks IBM (IBM -2.8%) could still deliver 2H services growth due to less consulting exposure and strong orders, but believes risk has grown. (FQ3 results/call: I, II, III) (CC transcript)
    | Jun. 28, 2013, 10:24 AM | 4 Comments
  • Jun. 27, 2013, 7:07 PM
    IBM -1.4% AH after outsourcing/consulting rival Accenture posts a May quarter revenue miss and lowers guidance below consensus. Mentioned during Accenture's call: Consulting book-to-bill was 1.0, below a target of 1.1; outsourcing was at 1.3. $100M+ worth of bookings were recorded for 12 clients. Outsourcing revenue growth will slow in FQ4 (clients are slowing spending pace/levels), and consulting will show a low-single-digit Y/Y drop on a local currency basis. The U.S. and several major emerging markets are growing well; Europe remains weak. CEO Pierre Nanterme says competition is "stable," but adds a soft market will lead to price pressure. The company now expects FY13 free cash flow of $2.7B-$2.9B. ACN -6.9% AH.
    | Jun. 27, 2013, 7:07 PM | 3 Comments
  • Jun. 24, 2013, 3:58 PM
    Oracle (ORCL +0.2%) and Microsoft (MSFT +1.5%) make their partnership official. Oracle's database software will not only "receive full support from Oracle" when running on Microsoft's Windows Azure cloud app/infrastructure platform, but also when used with its Hyper-V virtualization platform. Java apps and Oracle's (Java-based) WebLogic app server will also be supported for use with Azure and Hyper-V. The deal could intensify the competitive pressure placed by Hyper-V on VMware's (VMW -2.5%) vSphere virtualization platform, and (to a lesser extent) by Oracle's database software and WebLogic on IBM's DB2 database and WebSphere app server. (PR)
    | Jun. 24, 2013, 3:58 PM | 1 Comment
  • Jun. 21, 2013, 2:59 PM
    "We give EMC credit for embracing technology shifts that appear to be disruptive to its legacy businesses," says Lazard's Edward Parker, commenting on reports the storage giant is buying ScaleIO, a company whose software-defined storage (SDS) platform does away with arrays from the likes of EMC, NetApp, IBM, and H-P (provided it makes sense for a deployment). Parker observes there are both array-supporting and array-free approaches to SDS, and that EMC already has the former covered via ViPR. He also notes the storage industry generally has a motto of "if it ain't broken, don't fix it," which could slow the pace at which array-free solutions are adopted.
    | Jun. 21, 2013, 2:59 PM | 1 Comment
Company Description
International Business Machines Corp is an Information Technology (IT) company. It creates business value for clients and solves business problems through integrated solutions that leverage information technology & knowledge of business processes.