>>> IBM misses by $0.64, misses on revs -- Co will guide on the

IBM misses by $0.64, misses on revs -- Co will guide on the call

Reports Q3 (Sep) non-GAAP earnings of $3.68 per share, $0.64 worse than the Capital IQ Consensus Estimate of $4.32; revenues rose -4% year/year to $22.4 bln vs the $23.37 bln consensus.
  • The company will provide earnings guidance during today's quarterly earnings conference call, and it is included in the presentation charts.
  • "We are disappointed in our performance. We saw a marked slowdown in September in client buying behavior, and their results also point to the unprecedented pace of change in our industry. While we did not produce the results we expected to achieve, we again performed well in our strategic growth areas -- cloud, data and analytics, security, social and mobile - where we continue to shift our business. We will accelerate this transformation."
    • Revenues from the Software segment were $5.7 billion, down 2% (down 2%, adjusting for currency) compared with the third-quarter of 2013. Software pre-tax income decreased 3% and pre-tax margin decreased to 35.5%.
    • The Americas' third-quarter revenues were $10.1 billion, a decrease of 2% (down 1%, adjusting for currency) from the 2013 period. Revenues from Europe/Middle East/Africa were down 2% to $7.2 billion (down 3%, adjusting for currency). Asia-Pacific revenues decreased 9% (down 8%, adjusting for currency) to $5.0 billion.
    • Revenues from the company's growth markets were down 6% (down 5%, adjusting for currency). Revenues in the BRIC countries — Brazil, Russia, India and China — were down 7% (down 7 percent, adjusting for currency).
  • The co has reached an agreement under which GLOBALFOUNDRIES will acquire IBM's Microelectronics OEM semiconductor business and manufacturing operations. The loss from discontinued operations in the third quarter includes a non-recurring pre-tax charge of $4.7 billion, or $3.3 billion, net of tax.
  • At the end of Sept 2014, IBM had ~$1.4 billion remaining from the current share repurchase authorization. The company expects to request an additional share repurchase authorization at the October 2014 board meeting.