Turbotodd

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

Posts Tagged ‘earnings

IBM Announces 2Q18 Earnings, Revenue Up 4% YOY

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IBM announced its 2Q 2018 earnings a few moments ago.

Some highlights:

  • GAAP EPS from continuing operations of $2.61; Operating (non-GAAP) EPS of $3.08; both up 5 percent
  • GAAP Pre-tax income up 14 percent; Operating (non-GAAP) pre-tax income up 11 percent — Pre-tax margins expanded more than 100 basis points year to year
  • Revenue of $20.0 billion, up 4 percent (up 2 percent adjusting for currency)
  • Strategic imperatives revenue of $39.0 billion over last 12 months, up 15 percent (up 12 percent adjusting for currency); represents 48 percent of IBM revenue
  • Cloud revenue of $18.5 billion over last 12 months, up 23 percent (up 20 percent adjusting for currency)
  • As-a-service annual exit run rate for cloud revenue of $11.1 billion in the quarter, up 26 percent year to year (up 24 percent adjusting for currency)
  • Maintains full-year operating (non-GAAP) EPS and free cash flow expectations

“We delivered strong revenue and profit growth in the quarter, underscoring IBM’s progress and momentum in the emerging, high-value segments of the IT industry,” said Ginni Rometty, IBM chairman, president and chief executive officer. “More clients are engaging IBM on their journey to the cloud, and deploying IBM Cloud, Watson AI, analytics, blockchain and security solutions. This demonstrates IBM’s unique leadership in providing innovative technology coupled with deep industry expertise, trust and security.”

Written by turbotodd

July 18, 2018 at 3:52 pm

Posted in 2018, earnings, wall street

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IBM 1Q18 Earnings: EPS Beats @ $2.45

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IBM’s 1Q18 earnings were just announced, and beat estimates on EPS of $2.42 per share at $2.45, and revenue at $19.1 billion (vs. estimates of $18.84 billion).

CNBC’s report highlights:

Last quarter, IBM announced revenue growth from the year-ago quarter for the first time in more than five years. That streak is now continuing for a second quarter.

But the company reaffirmed its previous guidance of $13.80 in earnings per share, excluding certain items, for the full year of 2018, while analysts polled by FactSet had expected $13.83 per share, according to Thomson Reuters.

Cantor Fitzgerald analysts led by Joseph Foresi said in a Friday note that they expect IBM to report gains from companies upgrading to IBM’s latest mainframe computer, the z14.

IBM continues to seek growth from its strategic imperatives, which include social, mobile, analytics and cloud. In the fourth quarter that group contributed 49 percent of all revenue, and the Cantor analysts expect that balance to be unchanged in the first quarter.

With respect to guidance, for the second quarter analysts expect IBM to forecast $3.05 in earnings per share, excluding certain items, on $19.9 billion in revenue, according to Thomson Reuters.

Written by turbotodd

April 17, 2018 at 3:19 pm

Posted in 2018, earnings, ibm

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Open Sesame

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Lest my blog become too Western-centric, it’s time to return to the China Internet watch, this time for Alibaba’s earnings.

Please remember, Jack Ma’s empire is vast and ever-expanding, with businesses that include two of the world’s largest and most popular online retail marketplaces, Taobao and Tmall, an affiliation with Ant Financial, its new Digital Media and Entertainment Group, and Alibaba.com and Alipay (among others).

Earlier today, Alibaba Group Holding Ltd. indicated its third-quarter revenue jumped 56 percent, beating expectations, according to a report from Reuters.

The group also raised its full year forecast, and announced its 33 percent stake in Ant Financial. 

As Reuters reports, Alibaba is looking for new areas such as cloud computing, payments, and offline retail to maintain its rapid growth rates that make it one of the world’s most valuable companies, with a current market cap of $523 billion.

Alibaba’s cloud business was reported to have crossed 1 million customers globally in the quarter ended last September.

In other words, Alibaba is huuugggeee, and getting huger all the time.

Written by turbotodd

February 2, 2018 at 9:37 am

Apple Earnings

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Apple announced its fiscal 2018 first quarter earnings this afternoon, posting quarterly revenue of $88.3 billion, a 13 percent YOY increase and all-time record. International sales accounted for 65 percent of its quarter’s revenue, according to a press release put out by Apple.

We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November,” said Tim Cook, Apple’s CEO. “We’ve also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That’s an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers.

9to5 Mac helped break Apple’s unit sales down by product line:

  • 77.3 million iPhones
  • 13.2 million iPads
  • 5.1 million Macs

The company earned $20.1 billion in profit.

But Engadget notes that this was “the first time iPhone sales have declined during a holiday quarter since the phone launched, best as we can tell,” suggesting an iPhone market saturation.

Yet even if Apple overshot its forecast for iPhone X sales and is ramping down production, “Apple says the iPhone X has been the top-selling iPhone every week since it shipped in early November.”

One other bright spot: The “other products” category, which includes the Apple Watch, AirPods, Beats hardware, and other products, where revenue increased 70 percent YOY up to $5.5 billion.

Perhaps AirPods have finally hit their stride, with supply now starting to finally match demand (they appeared 6-week backlogged for the better part of a year!).

Written by turbotodd

February 1, 2018 at 4:01 pm

Posted in 2018, apple, earnings

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IBM 1Q 2013 Earnings

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I was sitting here at JFK waitin’ on a plane and IBM’s 1Q 2013 earnings came across the wire, so here goes:

  • Diluted EPS: GAAP: $2.70, up 3 percent; Operating (non-GAAP): $3.00, up 8 percent
  • Net income: GAAP: $3.0 billion, down 1 percent; Operating (non-GAAP): $3.4 billion, up 3 percent
  • Gross profit margin: GAAP: 45.6 percent, up 0.6 points; Operating (non-GAAP): 46.7 percent, up 1.0 points
  • Revenue: $23.4 billion, down 5 percent, down 3 percent adjusting for currency
  • Free cash flow of $1.7 billion, down $0.2 billion
  • Software revenue flat, up 1 percent adjusting for currency; Pre-tax: income up 4 percent; margin up 1.2 points
  • Services revenue down 4 percent, down 1 percent adjusting for currency; Pre-tax: income up 10 percent; margin up 2.0 points
  • Services backlog of $141 billion, up 1 percent, up 5 percent adjusting for currency; Closed 22 deals of more than $100 million in the quarter
  • Systems and Technology revenue down 17 percent, down 16 percent adjusting for currency
  • Growth markets revenue down 1 percent, up 1 percent adjusting for currency
  • Business analytics revenue up 7 percent; Smarter Planet revenue up more than 25 percent; Cloud revenue up more than 70 percent
  • Reiterating full-year 2013 operating (non-GAAP) EPS expectation of at least $16.70.

IBM announced first-quarter 2013 diluted earnings of $2.70 per share, a year-to-year increase of 3 percent.  Operating (non-GAAP) diluted earnings were $3.00 per share, compared with operating diluted earnings of $2.78 per share in the first quarter of 2012, an increase of 8 percent.

First-quarter net income was $3.0 billion, down 1 percent year-to-year. Operating (non-GAAP) net income was $3.4 billion compared with $3.3 billion in the first quarter of 2012, an increase of 3 percent. Total revenues for the first quarter of 2013 of $23.4 billion were down 5 percent (down 3 percent, adjusting for currency) from the first quarter of 2012. 

“In the first quarter, we grew operating net income, earnings per share and expanded operating margins but we did not achieve all of our goals in the period. Despite a solid start and good client demand we did not close a number of software and mainframe transactions that have moved into the second quarter.  The services business performed as expected with strong profit growth and significant new business in the quarter,” said Ginni Rometty, IBM chairman, president and chief executive officer.

“Looking ahead, in addition to closing those transactions, we expect to benefit from investments we are making in our growth initiatives and from the actions we are taking to improve under-performing parts of the business.  We remain confident in this model of continuous transformation and in our ability to deliver our full-year 2013 operating earnings per share expectation of at least $16.70.” 

Pre-tax income decreased 6 percent to $3.6 billion.  Pre-tax margin decreased 0.1 points to 15.4 percent.  Operating (non-GAAP) pre-tax income decreased 1 percent to $4.1 billion and pre-tax margin was 17.4 percent, up 0.8 points.

IBM’s tax rate was 15.9 percent, down 4.1 points year over year; operating (non-GAAP) tax rate was 17.3 percent, down 3.2 points compared to the year-ago period. The lower tax rate is primarily due to benefits recorded to reflect changes in tax laws enacted during the quarter, including the reinstatement of the U.S. Research and Development Tax Credit.

Net income margin increased 0.5 points to 13.0 percent.  Total operating (non-GAAP) net income margin increased 1.2 points to 14.4 percent.

The weighted-average number of diluted common shares outstanding in the first-quarter 2013 was 1.12 billion compared with 1.17 billion shares in the same period of 2012.  As of March 31, 2013, there were 1.11 billion basic common shares outstanding.

Debt, including Global Financing, totaled $33.4 billion, compared with $33.3 billion at year-end 2012.  From a management segment view, Global Financing debt totaled $25.2 billion versus $24.5 billion at year-end 2012, resulting in a debt-to-equity ratio of 7.2 to 1.  Non-global financing debt totaled $8.2 billion, a decrease of $0.6 billion since year-end 2012, resulting in a debt-to-capitalization ratio of 34.3 percent from 36.1 percent.

IBM ended the first-quarter 2013 with $12.0 billion of cash on hand and generated free cash flow of $1.7 billion, excluding Global Financing receivables, down approximately $0.2 billion year over year.  The company returned $3.5 billion to shareholders through $0.9 billion in dividends and $2.6 billion of gross share repurchases.  The balance sheet remains strong, and the company is well positioned to support the business over the long term.

Written by turbotodd

April 18, 2013 at 3:37 pm

IBM 4Q 2012 Earnings Rise On Software Sales

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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:

Fourth-Quarter 2012

Diluted EPS:

GAAP: $5.13, up 11 percent;

Operating (non-GAAP): $5.39, up 14 percent;

Net income:

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;

Net income:

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.

Written by turbotodd

January 22, 2013 at 9:45 pm

IBM Announces 3Q 2012 Earnings

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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:

Diluted EPS:

  • GAAP: $3.33, up 4 percent; $3.44, up 8 percent excluding UK pension-related charges;
  • Operating (non-GAAP): $3.62, up 10 percent;

Net income:

  • 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.

Written by turbotodd

October 16, 2012 at 8:38 pm

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