IBM Earnings Trumped By Backlog Growth (IBM)

Earnings came in at $4.62 EPS and $29.5 billion in revenues. The earnings estimate from Thomson Reuters was $4.62 EPS on $29.74 billion in sales. 

The services backlog of orders was listed at $141 billion versus $137 billion at the end of September and versus a June figure for backlog of about $144 billion.  The 2012 guidance is being taken as an “under-promise to over-deliver” because that is $14.16 or so was a net but the adjusted figure is at least $14.85 EPS versus a Thomson Reuters consensus of about $14.80.  The company has also noted that it is well on its way to pass its target of $20.00 EPS by 2015.

At $180.52 after a 0.3% drop today, the stock was up 2% in the after-hours around $184.00 and still wedged between its 50-day moving average ($185.19) and the 200-day moving average ($174.45).

Options traders were pricing in a move of $3 or $4 in either direction after the news.

JON C. OGG