IBM reports EPS in-line, misses on revs; reaffirms FY14 EPS guidance above consensus (196.40 -0.62)
Reports Q1 (Mar) earnings of $2.54 per share, in-line with the Capital IQ Consensus of $2.54; revenues fell 3.9% year/year to $22.48 bln vs the $22.95 bln consensus. Non-GAAP gross margin +90 bps tp 47.6%. Revenue: $22.5 billion, down 4%; down 1% adjusting for currency, excluding divested customer care outsourcing business: Software, Services and Global Financing each grew, adjusting for currency; Software up 2% as reported and adjusting for currency Services down 2%; up 2% adjusting for currency and excluding divested customer care outsourcing business Global Financing up 3%, up 6% adjusting for currency Systems and Technology down 23% as reported and adjusting for currency; Services backlog of $138 billion, up 1% adjusting for currency and excluding divested customer care outsourcing business; Business analytics revenue up 5%, up 6 percent adjusting for currency; Cloud revenue up more than 50%: For cloud delivered as a service, first-quarter annual run rate of $2.3 billion doubled year to year Co reaffirms guidance for FY14, sees EPS of at least $18.00, excluding non-recurring items, vs. $17.83 Capital IQ Consensus Estimate. Geographic Regions The Americas' first-quarter revenues were $9.6 billion, a decrease of 4% (down 2%, adjusting for currency) from the 2013 period. Revenues from Europe/Middle East/Africa were $7.6 billion, up 4% (up 1%, adjusting for currency). Asia-Pacific revenues decreased 12% (down 6%, adjusting for currency) to $5.0 billion. OEM revenues were $355 million, down 17% compared with the 2013 first quarter. Growth Markets Revenues from the company's growth markets decreased 11% (down 5%, adjusting for currency). Revenues in the BRIC countries — Brazil, Russia, India and China — decreased 11% (down 6%, adjusting for currency).