IBM’s Earnings Already Priced In (IBM)
International Business Machines Corp. (NYSE: IBM) reported $2.82 EPS and $24.3 billion in revenues. Thomson Reuters had estimates of $2.75 EPS and $24.12 billion in revenues. As far as guidance, IBM said 2011 would come in at least $11.40 versus…
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As far as guidance, IBM said 2011 would come in at least $11.40 versus a prior floor of $11.25. For 2010 the estimates are $11.29 EPS and $98.75 billion in revenues; for 2011 the estimates are $12.37 EPS and $102.46 billion in revenues.
IBM said its services backlog last quarter $134 billion versus $129 billion just a quarter ago. The company noted that this was actually down if you adjust for currency and flat over year ago levels.
BRIC countries revenue was up 29%, or 26% adjusting for currency; Business analytics revenue rose 14%; Systems and Technology revenue rose 10%, or 11% for currency adjustment; System z mainframe revenue rose 15%; MIPS rose 54%; Software revenue (excluding divested PLM operations) rose 4% but would have been up 6% adjusting for currency. Services revenue rose 2 percent
IBM shares closed up 1.25% at $142.83 and shares hit an all-time high of $143.03 today. Shares are down around $139.00 in the after-hours session for now. This is just a classic “Sell the news after a big rally” action.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
