IBM reports higher 1Q earnings, beats estimates
NEW YORK, USA – IBM Corp’s first-quarter net income grew seven per cent, helped by strong profit margins in its services business and strong revenue growth across its software and services businesses.
IBM said yesterday that it earned US$3.07 billion, or US$2.61 per share, in the January-March period. That’s up from US$2.86 billion, or US$2.31 per share, a year earlier.
Excluding special items such as acquisition costs, IBM earned US$2.78 per share in the latest period.
Revenue was flat at US$24.7 billion, falling short of analysts’ expectations. Software and services revenue grew, but IBM’s hardware and financing segments saw a decline.
Analysts surveyed by FactSet, on average, had expected adjusted earnings of US$2.66 per share on revenue of US$24.82 billion.
IBM, which is based in Armonk, New York, also said it is raising its full-year guidance. It now expects adjusted earnings of at least US$15 per share. That’s up from its earlier outlook of at least US$14.85 per share. Analysts were expecting US$14.93 per share.
IBM’s long-term goal is to reach at least US$20 per share in adjusted earnings by the end of 2015.
IBM’s stock fell US$3.95, or 1.9 per cent, to US$203.50 in after-hours trading yesterday. During the regular session, the stock gained US$4.73, or 2.3 per cent, to close at US$207.45.
