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International Business Machines Corporation (IBM)

  • Oct. 17, 2013, 2:08 PM
  • Oct. 16, 2013, 6:13 PM
  • Oct. 16, 2013, 4:20 PM
  • Oct. 16, 2013, 4:06 PM
  • Oct. 16, 2013, 12:10 AM
  • Oct. 15, 2013, 5:35 PM
  • Sep. 27, 2013, 1:07 PM
  • 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. 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, 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, 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
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  • 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
  • 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. 20, 2013, 4:19 PM
    More on Oracle:  New software license/cloud subscription growth only 1% Y/Y in FQ4 (was -2% in FQ3 and +17% in FQ2), at low end of guidance of 1%-11% (cloud competition to blame?). Software license/product support sales +6% (+7% prior), hardware product sales -13% (-23% prior), at high end of guidance of -13% to -23%. Engineered systems sales +45%, Oracle claims share gains against IBM's System p line. ERP/HR/CRM cloud app sales +50% Y/Y, total cloud business on $1B/year run rate. $2.8B spent on buybacks, limiting EPS miss. Company moving to NYSE. ORCL -6.3% AH. CC at 5PM ET (webcast), guidance should be provided. (PR)
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  • Apr. 19, 2013, 9:55 AM
    IBM (IBM -6.5%) would've missed Q1 EPS estimates by $0.34, rather than $0.05, if not for a lower tax rate, says BMO's Keith Bachman. Like others, Bachman is skeptical Big Blue's woes are solely due to execution, given weak results from peers (one can now add SAP to the list). "We think demand was perhaps weaker than we and the companies thought." Sterne Agee, however, is staying bullish precisely because it doesn't consider IBM's issues company-specific. Meanwhile, the WSJ is backing up CRN's report about the relatively low-margin x86 server unit being on sale. Morgan Stanley estimates the unit had 2012 sales of $4.9B. (previous) (transcript)
  • Apr. 18, 2013, 6:18 PM
    More on IBM's CC: Management stressed execution (particularly related to closing deals), rather than macro, is the main culprit for the Q1 miss. However, U.S. federal sales (a problem for many) fell 13% Y/Y, and China was also weak (leadership transition blamed). Free cash flow was $1.7B, down $200M Y/Y partly due to tax issues. $1B in "workforce rebalancing charges" are expected this year, mostly outside the U.S. IBM refuses to comment on CRN's x86 server sale report, but does say it's evaluating asset sales. IBM is counting on expanded Linux support to lift slumping Power server sales. Over 4K PureSystems sold thus far. Update: The WSJ is now also reporting the x86 server unit is on the block.
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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.