Shift Into Higher-Value Business Drives IBM (IBM) to Q4 Beat, Strong FY13 EPS Outlook
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Price: $181.79 +0.18%
EPS Growth %: +16.2%
Financial Fact:
Selling, general and administrative: 4.73B
Today's EPS Names:
MAXN, CSTR, ACU, More
EPS Growth %: +16.2%
Financial Fact:
Selling, general and administrative: 4.73B
Today's EPS Names:
MAXN, CSTR, ACU, More
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If you're talking about growth, add International Business Machines (NYSE: IBM) to that conversation.
The venerable IT giant reported revs fell one percent to $29.3 billion, though the number was up one percent after factoring-out divested RSS business. Operating net income rose 10 percent to $6.1 billion, or $5.39 per share.
Wall Street analysts were modeling revs of $29.1 billion and EPS of just $5.25.
While Software revs rose four percent in the quarter following currency adjustments, the gains were offset partially by a one percent drop in Services revenue.
OEM revs slipped 5 percent to $679 million.
Regionally, Asia/Pacific led growth with an adjusted gain of five percent to $7 billion, while IBM's Americas segment saw just a one percent rise to $12.5 billion.
"Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives -- growth markets, analytics, cloud computing, Smarter Planet solutions -- which support our continued shift to higher-value businesses," commented CEO Ginni Rometty. "Looking ahead, we continue to invest to deliver innovations for the enterprise in key areas such as big data, mobile solutions, social business and security, while expanding into new markets and reaching new clients." IBM is modeling for EPS of $20 by 2015.
Looking ahead, IBM sees FY13 EPS of at least $16.70, topping consensus expectations calling for EPS of $16.63.
Shares of IBM are up about three percent in late trading Tuesday.
The venerable IT giant reported revs fell one percent to $29.3 billion, though the number was up one percent after factoring-out divested RSS business. Operating net income rose 10 percent to $6.1 billion, or $5.39 per share.
Wall Street analysts were modeling revs of $29.1 billion and EPS of just $5.25.
While Software revs rose four percent in the quarter following currency adjustments, the gains were offset partially by a one percent drop in Services revenue.
OEM revs slipped 5 percent to $679 million.
Regionally, Asia/Pacific led growth with an adjusted gain of five percent to $7 billion, while IBM's Americas segment saw just a one percent rise to $12.5 billion.
"Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives -- growth markets, analytics, cloud computing, Smarter Planet solutions -- which support our continued shift to higher-value businesses," commented CEO Ginni Rometty. "Looking ahead, we continue to invest to deliver innovations for the enterprise in key areas such as big data, mobile solutions, social business and security, while expanding into new markets and reaching new clients." IBM is modeling for EPS of $20 by 2015.
Looking ahead, IBM sees FY13 EPS of at least $16.70, topping consensus expectations calling for EPS of $16.63.
Shares of IBM are up about three percent in late trading Tuesday.
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