International Business Machines Corp. (NYSE: IBM) reported third-quarter financial results after markets closed Monday. The company said that it had $2.58 in earnings per share (EPS) and $17.6 billion in revenue, versus analysts’ calls for $2.58 in EPS and $17.54 billion in revenue. The same period from last year had $2.68 in EPS and $18.03 billion in revenue.
In terms of its segments, the company reported:
- Cloud & Cognitive Software revenues increased 7% to $5.6 billion, up 6% in constant currency. Cloud & Data Platforms increased by 20% led by Red Hat.
- Global Business Services revenues decreased 5% to $4.0 billion, or 6% in constant currency.
- Global Technology Services revenues decreased 4% to $6.5 billion, Cloud revenue was up 9%.
- Systems revenues decreased 15% to $1.3 billion, or 16% in constant currency.
- Global Financing revenues decreased 20% to $273 million.
In the third quarter, the company generated net cash from operating activities of $4.3 billion, free cash flow was $1.1 billion. The company returned $1.5 billion to shareholders in dividends.
On the books, the company ended the quarter with $15.75 billion in cash, cash equivalents, and marketable securities, an increase of $6.74 billion from the end of 2019.
IBM previously pulled guidance earlier this year due to coronavirus uncertainty. The company also neglected to introduce any new guidance or comment on the way forward regarding COVID-19. However, analysts are calling for $4.45 in EPS and $20.79 billion in revenue for the fourth quarter.
IBM stock closed Monday at $125.52, with a 52-week range of $90.56 to $158.75. The consensus analyst price target is $136.87. Following the release, the stock was last seen down about 1% at $124.14 in the after-hours session.
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