IBM (IBM-NYSE) earnings: $1.21 EPS & $22 Billion in Revenues versus estimates of $1.21 & $21.8 Billion. The company’s total gross profit margin was 40.2% in the 2007 first quarter compared with 39.1% in 2006.
Americas revenues only grew 1%; EMEA revenues up 13%, 5% adjusted for currency; OEM revenues fell 5%. Global services grew 8%, 4% adjusted for currency; Global Business Services increased 9%, or 6% adjusted for currency; Global Technology Services increased 7%, 4% adjusted for currency.
IBM signed $11.1 Billion in services contracts, down 2% year over year. It ended with total services backlog including Strategic Outsourcing, Business Transformation Outsourcing, Global Business Services, Integrated Technology Services and Maintenance, of $115 Billion.
Revenues from the Systems and Technology (S&T) segment totaled $4.5 billion for the quarter; Revenues from the Software segment were $4.3 billion, an increase of 9 percent; Global Financing segment revenues increased 6 percent in the first quarter to $614 million.
IBM’s effective tax rate in the first-quarter 2007 was 28.5 percent compared with 30.0 percent in the first quarter of 2006. Shares repurchased totaled approximately $3.5 billion in the first quarter. Debt, including Global Financing, totaled $23.9 billion, compared with $22.7 billion at year-end 2006.
IBM shares are up 1.5% to $98.60 in after-hours, and that is after closing up almost 1% at $97.12. Its 52-week trading range is $72.73 to $100.90.
Jon C. Ogg
April 17, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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