International Business Machines
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), International Business Machines missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased.
Gross margins grew, operating margins dropped, net margins increased.
International Business Machines reported revenue of $24.75 billion. The 22 analysts polled by S&P Capital IQ looked for net sales of $25.38 billion on the same basis. GAAP reported sales were 5.4% lower than the prior-year quarter's $26.16 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $3.62. The 24 earnings estimates compiled by S&P Capital IQ anticipated $3.61 per share. GAAP EPS of $3.33 for Q3 were 4.4% higher than the prior-year quarter's $3.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.4%, 90 basis points better than the prior-year quarter. Operating margin was 18.6%, 160 basis points worse than the prior-year quarter. Net margin was 15.5%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $29.38 billion.
Next year's average estimate for revenue is $105.25 billion. The average EPS estimate is $15.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,215 members out of 4,642 rating the stock outperform, and 427 members rating it underperform. Among 1,028 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 961 give International Business Machines a green thumbs-up, and 67 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Business Machines is outperform, with an average price target of $215.57.
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