IBM beats by $0.04, misses on revs; lowers FY15 guidance
Reports Q3 (Sep) earnings of $3.34 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $3.30; revenues fell 13.9% year/year to $19.28 bln vs the $19.64 bln Capital IQ Consensus. Down 1% adjusting for currency (9 points) and the divested System x business (4 points).
Revenues from the Software segment were down 10% to $5.1 bln (down 3% adjusting for currency) compared with the third quarter of 2014.
Revenues from the company's strategic imperatives --- cloud, analytics, and engagement --- increased 17% year-to-year (up 27% adjusting for currency and the divested System x business
Co issues downside guidance for FY15, lowers EPS to $14.75-15.75, excluding non-recurring items, from $15.75-16.50 vs. $15.68 Capital IQ Consensus Estimate; lowers FCF to flat from a modest increase YoY.