Higher Guidance & $142 Billion Backlog Driving IBM (IBM)

Investing

Published: April 19, 2011 4:21 pm

Last Updated: April 27, 2020 10:55 pm

International Business Machines Corp. (NYSE: IBM) is out with better-than-expected earnings and the stock is reacting positively. Big Blue reported earnings at $2.41 EPS non-GAAP ($3.31 GAAP) and its revenues grew 8% (5% adjusted for currency) to $24.61 billion. Thomson Reuters had non-GAAP estimates at $2.30 EPS and $24.01 billion in revenues.

Gross margins were 44.1%, free cash flow was $800 million, and the company ended the quarter with about $13.2 billion. IBM is also raising its guidance for 2011 from $13.00 to ‘at least’ $13.15 in non-GAAP earnings on a constant currency basis. Thomson Reuters had estimates of $13.08.

We are just showing the gains here rather than the raw dollar breakdown. IBM’s Software revenue was up 10% or 8% adjusted for currency; Systems and Technology revenue was up 19%, or 16% adjusted for currency; System z mainframe sales were up 41%; MIPS rose 34 percent; Services rose by 6%, or 3% currency-adjusted.

IBM posted a whopper of a backlog by saying the services ordered but not yet filled rose $8 billion to $142 billion.

The stock closed down 0.3% at $165.40 and the 52-week range is $116.00 to $167.72. If the after-hours gain of almost 2% at $168.65 holds, then IBM is at new all-time highs.

JON C. OGG

It’s Your Money, Your Future—Own It (sponsor)

Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.

If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.