International Business Machines
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), International Business Machines met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share grew.
Margins grew across the board.
International Business Machines notched revenue of $29.30 billion. The 22 analysts polled by S&P Capital IQ expected sales of $29.09 billion on the same basis. GAAP reported sales were 0.6% lower than the prior-year quarter's $29.49 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 $5.39. The 25 earnings estimates compiled by S&P Capital IQ predicted $5.25 per share. GAAP EPS of $5.13 for Q4 were 11% higher than the prior-year quarter's $4.62 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 51.8%, 190 basis points better than the prior-year quarter. Operating margin was 26.9%, 190 basis points better than the prior-year quarter. Net margin was 19.9%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $24.71 billion. On the bottom line, the average EPS estimate is $3.03.
Next year's average estimate for revenue is $106.83 billion. The average EPS estimate is $16.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,282 members out of 4,718 rating the stock outperform, and 436 members rating it underperform. Among 1,053 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 994 give International Business Machines a green thumbs-up, and 59 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 $219.96.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends the following options: Long Jan 2014 $90 Calls on International Business Machines., Long Jan 2014 $0 Calls on International Business Machines., Long Jan 2014 $10 Calls on International Business Machines., and Long Jan 2014 $0 Puts on International Business Machines. The Motley Fool owns shares of International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.