International Business Machines Corporation (NYSE: IBM) is out with earnings which are not excessively positive. Big Blue has a new CEO and may have Warren Buffett behind it, but shares were down about 10% from the year high. This is the highest weighting of all DJIA stocks by far, so its 10% DJIA index weighting could drag the DJIA on Friday if there is not any improvement.
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
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
