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International Business Machines Corporation (IBM)

- NYSE
  • Jan. 22, 2013, 6:12 PM
    Margin improvements and buybacks will fuel another year of solid EPS growth for IBM, execs promised during the company's earnings call. Buybacks lifted Q4 EPS by $0.24 and 2012 EPS by $0.73. Margin gains are expected to come from mid-single-digit software growth and efforts to focus on higher-margin services. Still, there were some pointed questions about soft top-line growth in certain segments. Execs chose to focus on areas of strength such as middleware (gaining share) and cloud solutions (+80% in 2012). Shares +4.2% AH. (Q4: I, II) (slides)
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  • Jan. 22, 2013, 5:41 PM
    After-hours top gainers, as of 5:15 p.m.: CREE +15%. ISRG +9%. GOOG +5%. IBM +4%. SNE +2%.
    After-hours top losers: STRI -21%. BNNY -11%. WCC -4%. SNH -3%. IVR -3%.
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  • Jan. 22, 2013, 4:43 PM
    More on IBM: Gross margin hit 52.3% (+210bps Y/Y), contributed to EPS beat. Also helping is another $3B in buybacks. Services backlog was $140B, up $2B Q/Q and flat Y/Y. Services revenue -2% Y/Y (-6% in Q3), software +3% (-1% in Q3), hardware -1% (-13% in Q3). Free cash flow of $9.5B, above net income of $6.1B. Hardware boosted by 56% increase in system Z mainframe sales thanks to refresh, hurt by 19% drop in Power servers in spite of refresh. Middleware +4% with strength in WebSphere, Lotus, and Rational. IBM +2.8% AH. CC underway (webcast). (PR)
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  • Jan. 22, 2013, 4:11 PM
    IBM (IBM): Q4 EPS of $5.39 beats by $0.14. Revenue of $29.30B (-0.6% Y/Y) beats by $210M. Expects 2013 EPS of at least $16.70, above consensus of $16.63. Shares +4.1% AH. (PR)
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  • Jan. 22, 2013, 12:36 PM
    IBM (IBM +0.3%) is barely moving ahead of today's Q4 report. Shares have largely gone sideways after slumping in October thanks to a big Q3 revenue miss, Deutsche's Chris Whitmore predicts hardware sales will rise 1% Y/Y after falling 13% in Q3, thanks to refreshes to Big Blue's Power7 and PureSystems server lines. Software is seen growing 4.5% (-1% in Q3), but services bookings are a worry following a dearth of high-profile deal announcements. Outsourcing rival Infosys recently delivered a strong FQ3 report.
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  • Jan. 22, 2013, 12:05 AM
    Notable earnings after Tuesday’s close: AMD, CA, CPWR, CREE, CSX, EZPW, GOOG, IBM, IGT, ISRG, NSC, RFMD, TSS, TXN
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  • Jan. 21, 2013, 5:35 PM
    Notable earnings after Tuesday’s close: AMD, CA, CPWR, CREE, CSX, EZPW, GOOG, IBM, IGT, ISRG, NSC, RFMD, TSS, TXN
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  • Jan. 17, 2013, 7:07 PM
    The latest server architecture for Facebook's Open Compute data center platform could present a huge challenge to server OEMs such as IBM, H-P (HPQ), and Dell (DELL). Not only does the open-source architecture enable cheap, energy-efficient servers, it offers a tremendous amount of flexibility to install and swap out parts as users see fit. It arrives at a time when many incumbents are already struggling to deal with the adoption of cheap commodity servers by Internet/cloud giants. (Rackspace)
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  • Jan. 14, 2013, 9:24 AM
    "Within tech, we think that prospects of a potential bottoming in consensus estimates are improving ... relative safe haven stocks could be used as a source of funds," writes JPMorgan's Mark Moskowitz, explaining why he's downgrading EMC (EMC -1%) and IBM (IBM -1%) while upgrading H-P (HPQ +1.6%) and Fusion-io (FIO +6.1%). Apple and NetApp are his top large-cap picks, and Fusion-io, which he argues continues to "hold the pole position in server-side data acceleration," is his top small/mid-cap pick. EMC has already seen a raft of negative sell-side notes.
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  • Jan. 11, 2013, 12:47 PM
    Splunk (SPLK +6.3%) is rallying, apparently on a rumor IBM could bid for the company. As the top vendor in a fast-growing analytics software segment, Splunk is definitely in IBM's wheelhouse. But it also trades at lofty multiples and would probably require a buyout price north of $4B. 18.8% of the float was shorted as of Dec. 14.
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  • Jan. 4, 2013, 2:53 PM
    IBM (IBM -0.8%) services chief Mike Daniels, a 36-year vet, is retiring on March 31. Daniels, once seen as a potential CEO candidate, has overseen a business that accounts for ~60% of Big Blue's revenue and over 40% of its gross profit.
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  • Dec. 21, 2012, 5:28 AM
    A federal judge blasts the SEC and IBM (IBM) over their $10M settlement covering anti-bribery allegations brought up last year. A rather hot U.S. District Judge Richard Leon said he won't "rubber stamp" the deal unless the parties agree to additional FCPA reporting terms imposed by the court or produce a mountain of evidence on why such terms would be too burdensome. During the hearing, Leon promised not to roll over like the SEC has in the case.
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  • Dec. 20, 2012, 2:00 PM
    "IBM has a unique business model that is very difficult to replicate," declares Sterne Agee's Shaw Wu, who has made the IT giant a top 2013 pick. Big Blue's success in offering integrated hardware/software/services solutions makes it a lot like Apple, Wu argues, and the fact 60% of its profits come from recurring streams provides predictability. He's also optimistic IBM's Power server refresh will boost software/services sales. Shares have been in a trading range the last 2 months after falling in the wake of a disappointing Q3 report (I, II).
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  • Dec. 19, 2012, 10:52 AM
    IBM is acquiring StoredIQ, a developer of information lifecycle management (ILM) software. Like so many other firms, StoredIQ pitches itself as a big data play, claiming its solutions give businesses control over the growing volumes of unstructured data spread out over PCs, storage systems, and other hardware, both for management and regulatory purposes. The deal strengthens IBM's efforts to grow its storage software ops in the face of sputtering hardware sales.
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  • Dec. 18, 2012, 9:40 AM
    H-P (HPQ -0.6%) opens lower after Topeka's Brian White, best known for praising all things Apple, downgrades shares to Sell in response to their rally. H-P's product line issues, a weak IT spending environment, and Cisco and EMC's ambitions to become broader IT solutions providers are named as concerns. White also notes H-P's European exposure (EMEA was 36% of FQ4 sales), and says his firm believes "IT spending in the region has deteriorated further over the past few weeks." (yesterday)
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  • Dec. 17, 2012, 2:24 PM
    Among the sensory technologies IBM's R&D labs expects to have a big impact over the next 5 years: haptic capabilities that deliver a real-life sense of touch (IMMR is a player here); image-recognition capabilities for billions of photo/video uploads (Facebook and Google are both investing here); sensor networks for analyzing audio activity; and smell sensors embedded into mobile devices. Should these technologies take off, IBM could benefit via IP licensing and from providing analytics solutions to process the data they create. (PR)
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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.