IBM Earnings Strong & Solid; YEN reduces earnings by 7 cents
International Business Machines Corp said on Thursday its quarterly non-GAAP income rose 3 percent to $3.4 billion, or $3.00, compared with analyst estimates of $3.05 a share, according to Thomson Reuters I/B/E/S.
The deterioration in Yen currency since mid-January reduced EPS by $0.07, a spokesman said.
Quarterly revenue dropped 5 percent to $23.4 billion compared with estimates of $24.6 billion. Revenues fell 3 percent adjusted for currency.
This was not a solid quarter at all. Many contracts were pushed back into Q2 and if IBM lands those then Q2 promises to be solid. This was the first time in 17 quarters where IBM did not report 10% YOY EPS growth. I expect the stock to trade into the mid 190's next week.