IBM 3Q Earnings: Up 14%
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.