IBM beats by $0.39, misses on revs; co will guide on the call
Reports Q4 (Dec) earnings of $5.81 per share, excluding non-recurring items, $0.39 better than the Capital IQ Consensus Estimate of $5.42; revenues fell 11.9% year/year to $24.11 bln vs the $24.8 bln consensus; down 2%, adjusting for the impact of the divested customer care outsourcing and System x businesses and for currency.
Global Services segment revenues decreased 8% (flat adjusting for the impact of the divested customer care outsourcing and System x businesses and for currency) to $13.5 bln. Global Technology Services segment revenues decreased 8% (up 2% adjusting for the impact of the divested customer care outsourcing and System x businesses and for currency) to $9.2 bln. Global Business Services segment revenues were down 8% (down 3%, adjusting for currency) to $4.3 bln.
Revenues from the Software segment were $7.6 bln, down 7% (down 3%, adjusting for currency) compared with the fourth-quarter of 2013. Software pre-tax income decreased 11% and pre-tax margin decreased to 44.7%. Pre-tax income and margin include the impact of the fourth-quarter workforce rebalancing charge.
Total operating (non-GAAP) gross profit margin from continuing operations was 53.9 percent in the 2014 fourth-quarter compared with 53.3 percent in the 2013 fourth-quarter period.
$0.1 bln of gross share repurchases
Co will issue guidance fon the call at 16:30.