Turbotodd

Ruminations on IT, the digital media, and some golf thrown in for good measure.

IBM 3Q Earnings: Up 14%

with one comment

IBM just released its 3Q09 earnings, and here are the headlines:

  • Diluted earnings of $2.40 per share, up 18%
  • Full-year 2009 EPS expectations raised to at least $9.85 (from at least $9.70)
  • Net income of $3.2B, up 14%; net margin of 13.6% up 2.5 points
  • Free cash flow of $3.4B, up $1.3B YOY
  • Cash balance of $11.5B, $4B debt reduction in the third quarter.

IBM chairman, president and CEO Sam Palmisano had this to say: “Our long-term strategic shift to higher-value businesses again enabled us to deliver outstanding margin, earnings and cash flow growth in the third quarter.”

“We continued to invest for growth in areas where clients see potential for value creation including Smarter Planet solutions, cloud computing and advanced business analytics. We are optimistic about 2009 as we again raise our full-year expectations and we remain well ahead of pace for our 2010 roadmap of $10 to $11 per share.”

IBM expects full-year 2009 pre-tax income for both its software and services segments to grow at double-digit rates and reach approximately $8B.

More details can be found in the IBM 3Q09 earnings press release here.

Written by turbotodd

October 15, 2009 at 8:34 pm

Posted in Uncategorized

Tagged with , , ,

One Response

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  1. Net income grows while revenue declines. In some areas, the IBM employees got a severe reduction in revenue. For example, the technical software specialists in Europe got only 46% of their variable pay while their objectives were met.
    Is it a sustainable growth model?

    Robin

    October 19, 2009 at 7:11 am


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