The services backlog was $142 billion versus $134 billion reported just one quarter back, for gains of $8 billion sequentially and $5 billion more than a year ago. IBM offered guidance of GAAP EPS of at least $12.56 and operating (non-GAAP) EPS of at least $13.00. The company further noted that it is on track for its 2015 roadmap of $20.00 per share. The consensus estimate for all of 2011 is $12.58 EPS and $103.14 billion in revenues.
As far as the individual unit break-down:
- Software revenue excluding divested PLM operations up 11%; 12% adjusting for currency; 7% including PLM;
- Systems and Technology revenue was up 21%, 22% adjusting for currency;
- System z mainframe revenue rose 69%; MIPS rose 58%;
- Services revenue up 2% as reported and adjusting for currency;
- Growth markets revenue rose 15%, 13% adjusting for currency;
- Business analytics revenue rose 19%.
As a reminder, this was a game-changer for IBM on how it reports. It is now starting to issue earnings segments and breaking out GAAP and non-GAAP data. That may cause some confusion, but the after-hours reaction is speaking for itself.
Shares hit yet another 52-week high and all-time high of $151.46, and that compared to under $140 per share back in October. The closing price was up 0.4% at $150.65 and the after-hours session has shares trading up another 2.8% at $154.91.
JON C. OGG
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