More on IBM: EPS guidance maintained, Asia-Pac sales nosedive

|By:, SA News Editor

IBM is still guiding for 2013 EPS of at least $16.90 (consensus is at $16.89). Job cuts, $1.9B in buybacks (down from $3.6B in Q2), a lower tax rate (16% vs. 22% in Q2 and 24.6% a year earlier), and a 60 bps Y/Y increase in gross margin to 48% allowed Q3 EPS to beat estimates in spite of a $1B revenue miss.

Asia-Pac revenue -15% Y/Y, Americas -1%, EMEA +1%. Sales to BRIC countries fell 15% Y/Y., and sales to growth markets in general fell 9%.The numbers come shortly after Teradata warned of weak Asian sales.

Services revenue -4% Y/Y, same as Q2. Hardware is still ugly, -17% vs. -12%. Software +1% vs. +4%. Services backlog was $141B at quarter's end, flat Q/Q and +2% Y/Y.

IBM -5.2% AH. CC at 4:30PM ET.

Q3 results, PR