- IBM (NYSE:IBM) shares drop 5.1% aftermarket following Q1 results that beat EPS and revenue estimates. FY18 guidance reiterated with EPS of at least $13.80 (consensus: $13.84) and FCF of $12B.
- Segment performance: Cognitive Solutions (solutions and transaction processing software), $4.3B (+2% in constant currency) ; Global Business Services (consulting, global process services, and application management), $4.2B (-1%) ; Technology Services & Cloud Platform (infrastructure services, tech support services, integration hardware), $8.6B (-1%) ; Systems (systems hardware and OS software), $1.5B (+4%) ; Global Financing (financing and used equipment sales), $405M (-4%).
- Strategic imperatives and cloud: Revenue was up 10% (constant currency) to $37.7B in the last 12 months. Total cloud revenue was up 20% to $17.7B. The annual exit run rate for as-a-service revenue increased 20% to $10.7B.
- Financials: Cash from operating activities, $4.6B (including Global Financing receivables); FCF, $1.3B; cash on hand, $13.2B; debt, $46.4B (including Global Financing debt of $31.7B).
- Investor returns: IBM returned $2.2B to shareholders through $1.4B in dividends and $0.8B in share repurchases.
- IBM’s earnings call is scheduled for 5 PM Eastern with a webcast available here.
- Press release
- Previously: International Business Machines beats by $0.06, beats on revenue (April 17)
- Now read: IBM: Yield-Enhancing Trajectory
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