On July 18, IBM
- Revenues rose 8.6%, backed by 12.7% growth in the software segment. This was partially offset by sluggish performance from the "systems and technology" division.
- Foolish analyst Ryan Fuhrmann is generally optimistic about the quarter; read his thoughts right here.
- IBM stock carries a middling three-star rating in Motley Fool CAPS.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$23,772.0 |
$21,890.0 |
8.6% |
|
Net Profit* |
$2,261.0 |
$2,022.0 |
11.8% |
|
EPS |
$1.55 |
$1.30 |
19.2% |
|
Diluted Shares |
1,460.8 |
1,560.1 |
(6.4%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
41.8% |
41.2% |
0.6 |
|
Operating Margin |
11.7% |
11.8% |
(0.1) |
|
Net Margin |
9.5% |
9.2% |
0.3 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$10,190.0 |
$9,990.0 |
2.0% |
|
Accounts Rec. |
$32,103.0 |
$29,601.0 |
8.5% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$27,541.0 |
$26,210.0 |
5.1% |
|
Long-Term Debt |
$14,179.0 |
$13,872.0 |
2.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$3,400.0 |
$2,600.0 |
30.8% |
|
Capital Expenditures |
$1,100.0 |
$1,100.0 |
0.0% |
|
Free Cash Flow |
$2,300.0 |
$1,500.0 |
53.3% |
Free cash flow is a Fool's best friend.
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
