- IBM (NYSE:IBM) shares are up 4.08% aftermarket following Q3 results with revenue and EPS beats. The company forecasts FY17 diluted operating EPS of at least $13.80, compared to $13.75 consensus, with flat FCF on the year.
- Segment sales: Cognitive Solutions (solutions and transaction processing software), $4.4B (+4% Y/Y, 78.7% profit margin); Global Business Services (consulting, global process services, app management), $4.1B (-2% Y/Y, 27.3% margin); Tech Services & Cloud Platforms (infrastructure services, tech support, integration software), $8.5B (-3% Y/Y, 41.1% margin); Systems (systems hardware, operating systems software), $1.7B (+10% Y/Y, 53.6%); Global Financing, $427M (+4%, 25.2% margin).
- Other key sales numbers: Cloud revenues were up 20% to $4.1B. Annual exit run rate for as-a-service revenue increased to $9.4B from last year’s $7.5B.
- Financials: Cash from operating activities, excluding Global Financing receivables, totaled $3.3B and FCF was $2.5B. IBM ended the quarter with $11.5B in cash on hand and $45.6B in debt. The company returned $1.4B in dividends, $0.9B in gross share repurchases, and had $1.5B remaining in the current share repurchase authorization as of September.
- Press release
- Previously: International Business Machines beats by $0.02, beats on revenue (Oct. 17)
- Now read: These 2 High-Yield Dividend Growth Stocks May Eventually Be Doomed To Oblivion
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