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