IBM Beats On Q3 Earnings & Revenues, Reiterates '17 EPS View
Zacks Investment Research | Oct 17, 2017 10:13PM ET
International Business Machines Corp (NYSE:IBM) reported third-quarter 2017 non-GAAP earnings of $3.30 per share, which beat the Zacks Consensus Estimate by couple of cents. Earnings per share (EPS) were a penny better than the year-ago figure and surged 11.1% sequentially.
Revenues of $19.15 billion surpassed the Zacks Consensus Estimate of $18.62 billion but were almost flat on a year-over-year basis. At constant currency (cc), revenues declined 1%. Moreover, revenues fell 0.7% sequentially.
The top-line performance was better than expected primarily due to higher cognitive solutions and systems revenues. Cognitive revenues were driven by robust performance from security, Internet of Things (IoT) andanalytics offerings. Systems benefited from strong demand for storage and the launch of new z14 mainframe.
Moreover, Strategic Imperatives (cloud, analytics, mobility and security) grew 10% at cc from the year-ago quarter. On a trailing 12-month basis, revenues increased 10% to $35 billion and now represents 45% (up from 43% in the previous quarter) of the company’s total revenue.
Geographically, Americas and Europe/Middle-East/Africa declined 2% and 1%, respectively, on a year-over-year basis. Management noted year-over-year growth in Germany, France, Italy and Spain, partially offset by declines in the UK. The company’s services business continues to win customers in the UK, Germany and Spain. Asia-Pacific revenues inched up 2%, driven by good growth in Japan and China.
International Business Machines Corporation Price, Consensus and EPS Surprise
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