Turbotodd

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

IBM Q1 2012 Earnings Out, Full Year Earnings Guidance Raised

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IBM just released its first quarter earnings announcement, which came in with diluted earnings of $2.61 per share, compared to $2.31 per share in the first quarter of last year, a 13% year-over-year increase.

First quarter income was $3.1 billion compared with $2.9 billion in the first quarter of 2011, an increase of 7 percent.

Total revenues for the first quarter of 2012 $24.7 billion, flat year over year but up 1 percent when adjusting for currency.

Here’s the top line:

  • Diluted EPS:
    • GAAP: $2.61, up 13 percent;
    • Operating (non-GAAP): $2.78, up 15 percent;
  • Net income:
    • GAAP: $3.1 billion, up 7 percent;
    • Operating (non-GAAP): $3.3 billion, up 9 percent;
  • Gross profit margin:
    • GAAP: 45.1 percent, up 0.9 points;
    • Operating (non-GAAP): 45.7 percent, up 1.2 points;
  • Revenue: $24.7 billion, flat, up 1 percent adjusting for currency;
  • Free cash flow of $1.9 billion, up $1.1 billion;
  • Software revenue up 5 percent, 7 percent adjusting for currency;
  • Services revenue up 1 percent:
    • Services pre-tax income up 11 percent;
  • Services backlog of $139 billion, down 2 percent, up 1 percent adjusting for currency;
  • Systems and Technology revenue down 7 percent, 6 percent adjusting for currency;
  • Growth markets revenue up 9 percent;
  • Business analytics revenue up 14 percent;
  • Smarter Planet revenue up more than 25 percent;
  • Cloud revenue doubled first-quarter 2011 revenue;
  • Full-year 2012 operating (non-GAAP) EPS expectations raised to at least $15.00 from at least $14.85.

“In the first quarter, we drove strong profit and earnings per share growth. We delivered another excellent software performance, expanded services margins, and continued the momentum in our growth initiatives,” said Ginni Rometty, IBM president and chief executive officer. “Our investments in growth market countries continued to generate strong revenue growth across software, hardware and services while contributing to the company’s ongoing margin expansion.

“Based on this performance, we are raising our 2012 full-year operating earnings per share expectations to at least $15.00.”

Written by turbotodd

April 17, 2012 at 8:30 pm

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