IBM Earnings: Revenue Growth Drives Margin, Profit Increases

The Big Numbers: 

The company reported EPS of adjusted net income of $3/share versus the $3.01/share estimate and revenues of $26.67 billion versus the $25.35 billion estimate. IBM managed to exceed Wall Street estimates with stronger-than-expected EPS and revenues. EPS rose 14.9% while revenue climbed 12.4% from the same period last year. The company's revenue has now increased the past four quarters on a year-over-year basis. 

Income: 

For the year, IBM reported net income of $10.74 per share. The company fells short of analysts projections of $12.42. According to the reported number, the company's income rose 8.2% from last year's levels. According to the reported number, the company's income fell 8.2% from last year's levels. The company's income has remained about on par with last year's levels. 

Conference Call: 

The conference call for second quarter earnings can be accessed here.  

Official Comment: 

"In the second quarter our long-term strategic investments in the company's growth initiatives again helped drive strong revenue performance," said Samuel J. Palmisano, IBM chairman, president and chief executive officer. "Hardware, software and services revenue grew at double digits, and we achieved strong profit and free cash flow growth." 

Industry: With price/earnings growth of 1.4%, International Business Machines' industry, computer-integrated systems, is expanding. The company's EPS compares unfavorably with its industry's estimated average of $3.82. 

What to Do Next: Now you're all set to decide what to do with those IBM shares until the next earnings announcement. Whether you buy, sell or hold, check back with before the company's next earnings release for a full preview.

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