IBM Grows Earnings but Misses on Revenue

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

IBM (NYSE: IBM  )  today announced earnings per share of $3.68 on net income of $4 billion -- which were up 11% and 6%, respectively, over the last quarter. However, its revenue fell by 2% after adjusting for currency fluctuations, to $23.7 billion.

IBM's systems and technology segment experienced the biggest losses, with revenue falling there by $650 million, or 16%. Revenue for its global technology services division also fell by approximately $400 million, or 4.3%. In addition, it saw significant losses in its growth markets, which fell by 5% after adjusting for currency. The release also noted that its revenue from the BRIC countries (Brazil, Russia, India, and China) fell by 12%.

While IBM's total gross profit fell by $350 million, it did see its gross profit margin rise from 47.4% to 48%. In total, its net income of $4.0 billion was an improvement on the $3.8 billion posted in the third quarter of 2012.

IBM CEO Ginni Rometty said of the results, "In the third quarter we continued to expand operating margins and increased earnings per share, but fell short on revenue. Where we had identified high growth opportunities and pursued them aggressively -- cloud, mobile, business analytics, and security -- we continued to show strong growth."

She added that IBM is "taking action to improve execution in our growth markets unit and in the elements of our hardware businesses that are under performing."

IBM expects to have full-year earnings per share of $15.01 in 2013, and Rometty reassured investors that the company remains confident that it will be able to deliver $20 operating earnings per share in 2015.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2686617, ~/Articles/ArticleHandler.aspx, 9/27/2016 6:44:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:02 PM
IBM $153.98 Down -1.00 -0.65%
IBM CAPS Rating: ****