Archive for the ‘earnings’ Category
IBM today announced first-quarter earnings results for 2017.
- Diluted EPS from continuing operations: GAAP of $1.85; Operating (non-GAAP) of $2.38
- Revenue from continuing operations of $18.2 billion
- Strategic imperatives revenue of $7.8 billion in the quarter, up 12 percent (up 13 percent adjusting for currency)
- Strategic imperatives revenue of $33.6 billion over the last 12 months represents 42 percent of IBM revenue
- Cloud revenue of $14.6 billion over the last 12 months
- Cloud as-a-Service annual exit run rate of $8.6 billion in the quarter, up 59 percent year to year (up 61 percent adjusting for currency)
- Maintains full-year EPS and free cash flow expectations.
“In the first quarter, both the IBM Cloud and our cognitive solutions again grew strongly, which fueled robust performance in our strategic imperatives,” said Ginni Rometty, IBM chairman, president and chief executive officer. “In addition, we are developing and bringing to market emerging technologies such as blockchain and quantum, revolutionizing how enterprises will tackle complex business problems in the years ahead.”
You can see the full announcement here.
Tech earnings season kicked into high gear this week. A few synthesized highlights…
Apple reported $78.4B in Q1 2017 revenue, with 78.3M iPhones sold and a 19% decline in iPad sales. Apple said developers earned $20B from the App Store in 2016, a 40% increase.
Microsoft reported Q2 revenue of $26.1B, indicating Office 365 revenue grew 10% for the quarter. Microsoft indicated its Azure revenue increased 116% in the most recent quarter, “doubling usage.” Surface was down 2% YOY, Phone revenue down 81%.
Facebook reported Q4 revenue of $8.81B, indicating its mobile ad revenue was on a trajectory of bringing in 84% of all ad revenue. Their Monthly Active Users was 1.86B, up 3.91% for the quarter, and last quarter the company said it’s expecting to run out of ad space in mid-2017. It’s not clear whether this sent digital media buyers everywhere scurrying or not.
Amazon reported Q4 revenue of $43.7B, up 22% YOY, and AWS continued to chug forward growing at 47% and delivering revenue of $3.53B. AWS noted it had migrated more than 18K databases using the company’s service in 2016. Echo sales were up 9X compared to last holiday season. “Alexa, crank up the volume.”
And finally, there’s Snap (formerly known as Snapchat). TechCrunch reported their official IPO filing has their revenues at $404M in 2016 with some 158M daily users. That was 500% YOY growth, according to its S-1, but that also incurred a $513M net loss. But Snap has asserted it has a very aggressive “time spent per user” and has strong international growth in Western Europe and Australia. It also recently introduced its Ads API to widen the aperture on its advertising efforts. Its IPO is expected to be the largest tech float since Alibaba in 2014.
IBM announced this afternoon fourth-quarter 2012 diluted earnings of $5.13 per share, compared with diluted earnings of $4.62 per share in the fourth quarter of 2011, an increase of 11 percent.
Fourth-quarter net income was $5.8 billion compared with $5.5 billion in the fourth quarter of 2011, an increase of 6 percent. Total revenues for the fourth quarter of 2012 of $29.3 billion decreased 1 percent (flat adjusting for currency) from the fourth quarter of 2011.
“We achieved record profit, earnings per share and free cash flow in 2012. 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,” said Ginni Rometty, IBM chairman, president and chief executive officer.
“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. We are well on track toward our long-term roadmap for operating EPS of at least $20 in 2015.”
Following are key details of 4Q 2012 earnings:
GAAP: $5.13, up 11 percent;
Operating (non-GAAP): $5.39, up 14 percent;
GAAP: $5.8 billion, up 6 percent;
Operating (non-GAAP): $6.1 billion, up 10 percent;
Gross profit margin:
GAAP: 51.8 percent, up 1.8 points;
Operating (non-GAAP): 52.3 percent, up 2.1 points;
Revenue of $29.3 billion, down 1 percent, flat adjusting for currency:
Up 1 percent excluding divested RSS business adjusting for currency;
Free cash flow of $9.5 billion, up $0.6 billion;
Software revenue up 3 percent, up 4 percent adjusting for currency;
Services revenue down 2 percent, down 1 percent adjusting for currency;
Services backlog of $140 billion, flat, up $1 billion adjusting for currency;
Systems and Technology revenue down 1 percent, up 4 percent excluding RSS:
System z mainframe up 56 percent.
Full Year 2012
Diluted EPS, up double-digits for 10th consecutive year:
GAAP: $14.37, up 10 percent;
Operating (non-GAAP): $15.25, up 13 percent;
GAAP: $16.6 billion, up 5 percent;
Operating (non-GAAP): $17.6 billion, up 8 percent;
Revenue of $104.5 billion, down 2 percent, flat adjusting for currency;
Free cash flow of $18.2 billion, up $1.6 billion;
Growth markets revenue up 4 percent, up 7 percent adjusting for currency:
BRIC countries up 7 percent, up 12 percent adjusting for currency;
Business analytics revenue up 13 percent;
Smarter Planet revenue up more than 25 percent;
Cloud revenue up 80 percent.
Full-Year 2013 Expectation:
GAAP EPS of at least $15.53 and operating (non-GAAP) EPS of at least $16.70.
IBM’s 3Q 2012 earnings were just announced, with diluted earnings of $3.33 per share, a year-to-year increase of 4 percent, or $3.44 per share, up 8 percent excluding the impact of UK pension-related charges.
Operating (non-GAAP) diluted earnings were $3.62 per share, compared with operating diluted earnings of $3.28 per share in the third quarter of 2011, an increase of 10 percent.
Total revenues for the third quarter of 2012 of $24.7 billion were down 5 percent (down 2 percent, adjusting for currency) from the third quarter of 2011. Currency negatively impacted revenue growth by nearly $1 billion.
IBM chairman, president, and CEO Ginny Rometty had this to say about the quarter’s financial performance: “In the third quarter, we continued to drive margin, profit, and earnings growth through our focus on higher-value businesses, strategic growth initiatives, and productivity.
“Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit, and cash. We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10.”
Following are further highlights from the quarter:
- GAAP: $3.33, up 4 percent; $3.44, up 8 percent excluding UK pension-related charges;
- Operating (non-GAAP): $3.62, up 10 percent;
- GAAP: $3.8 billion, flat; $3.9 billion, up 3 percent excluding UK pension-related charges;
- Operating (non-GAAP): $4.2 billion, up 5 percent;
Gross profit margin:
- GAAP: 47.4 percent, up 0.9 points;
- Operating (non-GAAP): 48.1 percent, up 1.2 points;
Revenue: $24.7 billion, down 5 percent, down 2 percent adjusting for currency;
- Negative currency impact of nearly $1 billion;
- Divestiture of Retail Store Solutions (RSS) reduced revenue by 1 percent;
Software revenue down 1 percent, up 3 percent adjusting for currency;
Services revenue down 5 percent, flat adjusting for currency;
Services backlog of $138 billion, up 1 percent;
Systems and Technology revenue down 13 percent, down 12 percent adjusting for currency;
Growth markets revenue down 1 percent, up 4 percent adjusting for currency;
- BRIC countries up 4 percent, up 11 percent adjusting for currency;
Business analytics revenue up 14 percent year to date;
Smarter Planet revenue up more than 20 percent year to date
Cloud revenue year to date has exceeded full-year 2011 revenue;
Reiterating full-year 2012 operating (non-GAAP) EPS expectation of at least $15.10.
IBM 2012 second quarter earnings were just released, and IBM’s operating earnings per share (non-GAAP) came in above expectations at $3.51/share, a 14 percent increase YOY.
Revenue came in at $25.8 billion, down 3 percent YOY, but up 1 percent YOY when adjusted for common currency.
Operating net income was $4.1 billion, up 8 percent YOY, and free cash flow came in at $3.7 billion, up 9 percent YOY.
Second quarter segment highlights included software revenue led by Europe, Japan and the growth markets, and services profit, which was up 18 percent (with the services backlog flat at constant currency).
IBM’s software business reported revenues of $6.2 billion, which were up 4 percent when adjusted for common currency.
Once again, the WebSphere brand led the way, coming in at 3 percent growth YOY (7 percent when adjusted for common currency).
The Tivoli brand grew 2 percent YOY, 6 percent when adjusted for common currency. Overall gross margins for the software business were flat at 88.4 percent, but pre-tax income was $2.5 billion, up some 8 percent YOY.
IBM’s Systems and Technology group revenues were negatively impacted by the product cycle, coming in down 9 percent YOY, but STG gained share in the POWER systems segment.
IBM saw continued strength in its growth initiatives, with growth markets realizing YTD revenue growth of 9 percent YOY when adjusted for constant currency, and its business analytics business up 13 percent YOY.
Cloud computing revenue doubled YOY, and Smarter Planet revenue grew by over 20 percent YOY.
IBM’s annuity business provided a solid base of revenue, profit, and cash, and productivity initiatives drove structural improvements and helped contribute to IBM’s margin expansion.
Following is what IBM CEO Ginny Rometty had to say about IBM’s 2Q 2012 earnings:
“In the second quarter, we delivered strong profit, earnings per share and free cash flow growth. This performance reflects continued strength in our growth initiatives and investments in higher value opportunities,” said Ginni Rometty, IBM president and chief executive officer. “These are fundamental elements of our long-term business model.
“Looking ahead, we are well positioned to deliver greater value to a wider range of clients and to our shareholders. Given our performance in the first half and our outlook for the second half, we are raising our full-year operating earnings per share expectations to at least $15.10.”