Turbotodd

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

Posts Tagged ‘wall street

IBM Reports 1Q 2019 Results, Accelerates Cloud Revenue

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IBM announced its first quarter 2019 financial results this afternoon, with the lead being it both accelerated its cloud revenue growth and continued its margin expansion.

The top line: 

  • GAAP EPS from continuing operations of $1.78
  • Operating (non-GAAP) EPS of $2.25
  • Revenue of $18.2 billion, down 4.7 percent (down 0.9 percent adjusting for currency)
  • Cloud revenue growth accelerated in the quarter; now $19.5 billion over the last 12 months, up 10 percent (up 12 percent adjusting for currency)
  • As-a-service annual exit run rate for cloud revenue of $11.7 billion, up 10 percent year to year (up 15 percent adjusting for currency)
  • Gross profit margin: GAAP, up 100 basis points; Operating (non-GAAP), up 90 basis points — GBS gross profit margin up 280 basis points; GTS up 110 basis points
  • Pre-tax income margin: GAAP, up 440 basis points; Operating (non-GAAP), up 320 basis points
  • Maintains full-year EPS and free cash flow expectations ARMONK, N.Y.

“In the first quarter, our cloud revenue growth accelerated, and we again grew in key, high-value areas in Cloud and Cognitive Software and in consulting,” said Ginni Rometty, IBM chairman, president and chief executive officer. “IBM’s investments in innovative technologies coupled with our industry expertise and our commitment to trust and security position us well to help clients move to chapter two of their digital reinvention.”

Written by turbotodd

April 16, 2019 at 3:57 pm

Posted in 2019

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Bull Run

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The 2019 bull run continues.

The Dow Jones Industrial Average closed 211.22 points higher at 25,928.68 today, and CNBC reports that the S&P 500 has notched its best start to a year since 1998. 

What happened to that inverted bond yield???

Perhaps that’s all just more goodness for the soon-to-be rampant unicorns, including Lyft, whose IPO float today send the stock trading up 8.7 percent to $78.29, with more than 70 million shares trading on its first day as a public company. 

That lifted Lyft’s market valuation to $22.2 billion.

Other unicorns likely to be unleashed into the wild soon? Uber, Slack, Pinterest, among others.

Just remember, Lyft is currently #2 in the ride-hailing pecking order and lost $900 million in 2018.

While we’re on the subject of moolah, let’s talk about TechCrunch’s story about consumer spending on apps.

Sarah Perez’s headline suggests that spending will reach $156 billion across iOS and Google Play by 2023. Yes, you read that right.

That research estimate came from app store intelligence firm Sensor Tower, and suggests that both stores will more than double their revenues over the next five years. That’s +16.8 percent CAGR, if you’re counting along.

Getting further down into the numbers, that’s an estimated $96 billion for Apple and $60 billion for Google, with Apple taking nearly 62 percent of all revenue generated by the two platforms.

To put that in perspective, the global film industry was worth an estimated $136 billion as of 2018.

Time to hone those developer skills, because the bull run appears to continue across the board.

Written by turbotodd

March 29, 2019 at 3:50 pm

IBM Reports 4Q18 Earnings, Margin Expansion, Return to Full-Year Revenue Growth

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IBM announced 4Q18 earnings this afternoon.

The top line:

  • GAAP EPS from continuing operations of $2.15
    • Includes charge of $1.9 billion related to the U.S. Tax Cuts and Jobs Act of 2017
  • Operating (non-GAAP) EPS of $4.87
  • Revenue of $21.8 billion, down 3 percent (down 1 percent adjusting for currency)
    • Global Business Services and Cognitive Solutions revenue grew year to year
  • Gross profit margin up 10 basis points year to year; pre-tax income margin up more than 50 basis points year to year
    • Continued strong services gross profit margin expansion year to year
  • Full Year:
  • GAAP EPS from continuing operations of $9.51
    • Includes charge of $2.0 billion related to the U.S. Tax Cuts and Jobs Act of 2017
  • Operating (non-GAAP) EPS of $13.81
  • Revenue of $79.6 billion, up 1 percent (flat year to year adjusting for currency)
  • Strategic imperatives revenue of $39.8 billion, up 9 percent
  • Cloud revenue of $19.2 billion, up 12 percent
    • As-a-service annual exit run rate for cloud revenue of $12.2 billion in the quarter, up 18 percent year to year (up 21 percent adjusting for currency) IBM)

“In 2018 we returned to full-year revenue growth, reflecting growing demand for our services and leadership solutions in hybrid cloud, AI, analytics and security,” said Ginni Rometty, IBM chairman, president and chief executive officer. “Major clients worldwide, such as BNP Paribas, are turning to the IBM Cloud and our unmatched industry expertise to transform their businesses and drive innovation.”

Written by turbotodd

January 22, 2019 at 4:14 pm

Posted in 2019, earnings

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IBM Reports 2018 Third-Quarter Results

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IBM today announced its 2018 third-quarter results, generating its best year-to-year gross margin performance in three years, which reflected the company’s move towards higher value businesses.

Highlights are as follows:

  • GAAP EPS from continuing operations of $2.94; Operating (non-GAAP) EPS of $3.42
  • Revenue of $18.8 billion, down 2 percent (flat adjusting for currency)
  • Strategic imperatives revenue of $39.5 billion over last 12 months, up 13 percent (up 11 percent adjusting for currency)
  • Cloud revenue of $19.0 billion over last 12 months, up 20 percent (up 18 percent adjusting for currency) 
  • As-a-service annual exit run rate for cloud revenue of $11.4 billion in the quarter, up 21 percent year to year (up 24 percent adjusting for currency)
  • Strong services gross profit margin expansion year to year
  • Maintains full-year operating (non-GAAP) EPS and free cash flow expectations

“IBM’s progress and momentum this year in the emerging, high-value segments of the IT industry are driven by our innovative technology, deep industry expertise and commitment to trust and security,” said Ginni Rometty, IBM chairman, president and chief executive officer.  “Our leadership in the technology and services that deliver hybrid cloud, AI, blockchain, analytics and security has helped drive our overall performance, and is helping our clients unleash the full business value of these innovations.”

Written by turbotodd

October 16, 2018 at 4:45 pm

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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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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