International Business Machines Corp. (NYSE: IBM) has recovered handily from its lows since the last earnings report as it is now effectively all under control of new CEO Virginia Rometty now that Sam Palmisano has announced the coming exit of the chairman post. Shares are playing some give back after the report, and with IBM being the highest priced DJIA component this could skew the market to the downside on Wednesday.
IBM’s earnings on a comparable basis were $3.62 in non-GAAP earnings per share and total revenues for the quarter were down by 5% (2% if adjusted for currency) to $24.7 billion. Estimates from Thomson Reuters were $3.61 EPS and $25.36 billion in sales. IBM said that its total gross profit margin was 47.4% in the 2012 third quarter compared with 46.5% in the 2011 third-quarter period.
The estimated services backlog was up 1% year over year to $138 billion at the end of the quarter. That backlog figure was $136 billion just one quarter ago. IBM reiterated its full-year 2012 operating earnings per share expectation of at least $15.10.
Shares closed up 1% at $211.00 against a 52-week high of $211.79, but shares are down over 3% at $203.55 or so after its earnings report. As a reminder, the DJIA is a price-weighted index and this is the heaviest weighting at almost 12% of the total 30-component stock index. In short, IBM could drag down the DJIA by as much as about 50 points if all of the other 29 components remain static on Wednesday.
JON C. OGG
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
