IBM Beats Expectations, Shares Fall
NEW YORK (TheStreet) -- IBM (IBM) has lifted its full-year guidance and reported a third-quarter earnings beat.
For the third quarter, IBM reported a 12% increase in net income to $3.6 billion, from $3.2 billion the previous year. Earnings per share rose 18% to $2.82 per share, from $2.40 per share a year ago. Revenue increased 3% to $24.3 billion from $23.6 billion the same time last year.
 |
Analysts were expecting IBM to report earnings of $2.75 per share on revenue of $24.12 billion.
During the quarter, global services revenue increased 2%, growth markets revenue increased 16%, software segment revenue grew 1% and systems and technology revenue grew 10%.
IBM said it estimates that the company's services backlog at Sept. 30 was $134 billion, up $5 billion quarter on quarter and down $2 billion, adjusting for currency effects. The backlog was flat year over year, adjusting for currency. The backlog included signed services contracts of $11 billion, down 7% in the quarter, of which 10 contracts were greater than $100 million. Transactional signings were $5.4 billion, an increase of 4%. Outsourcing signings were $5.7 billion, down 15%. IBM said including an agreement signed on October 8, the company would have reported outsourcing signings growth of 14%, adjusting for currency effects, and that this would have increased total signings reported to $12.7 billion from $11 billion. IBM added that it has boosted full-year EPS expectations to at least $11.40 from the previously-expected $11.25. The full-year EPS consensus estimate has been $11.29. IBM stock has tumbled by 3.7% to $137.60 in after-hours trading despite the solid earnings announcement. >>Search for Highest Dividends by Rate or Yield| More on Earnings Today's Top Earnings |
| Earnings Calendar |
>To contact the writer of this article, click here: Andrea Tse. >To follow the writer on Twitter, go to Andrea Tse. >To submit a news tip, send an email to: tips@thestreet.com.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
