{"id":24374,"date":"2012-10-17T00:42:39","date_gmt":"2012-10-16T22:42:39","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=24374"},"modified":"2012-10-17T13:57:10","modified_gmt":"2012-10-17T11:57:10","slug":"ibm-quarterly-results-creep-past-expectations","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/hardware\/24374\/ibm-quarterly-results-creep-past-expectations\/","title":{"rendered":"IBM quarterly results creep past expectations"},"content":{"rendered":"

IBM<\/a> posted a quarterly revenue miss and barely beat analyst expectations for earnings per share as customers put off spending on big ticket items and a stronger dollar hit the company’s top line.<\/p>\n

International Business Machines Corp, which has shifted its focus to higher-margin software and services from tech products, said on Tuesday that earnings per share, excluding items, were $3.62, just beating average analysts’ estimates of $3.61.<\/p>\n

Excluding a $160 million charge related to UK pension fees net income fell slightly to $3.82 billion from $3.84 billion a year ago while net income, excluding acquisition costs, rose 5 percent to $4.2 billion.<\/p>\n

Revenue eased 5 percent to $24.7 billion due to a negative currency impact of almost $1 billion. Wall Street had expected a decline in revenue by about 3 percent to $25.36 billion.<\/p>\n

“If you look at the third quarter performance, we did start off the first two months of the quarter on a stronger trajectory than we saw for the full quarter'” Chief Financial Officer Mark Loughridge<\/a> said on a call with analysts.<\/p>\n

He added “a handful of deals … fell out of the quarter” which the company had thought were secure.<\/p>\n

The CFO also said that several large countries had disappointed with Mexico and Australia “both down double digits.”<\/p>\n

Global Equities Research<\/a> analyst Trip Chowdhry<\/a> said that some customers are holding off with purchases ahead of the U.S. presidential election, going ahead only with smaller purchases instead of replacing entire systems.<\/p>\n

“Customers are just not opening their wallets,” he said. “That is putting pressure on IT spend.”<\/p>\n

Revenues from IBM’s EMEA region, which includes Europe, Middle East and Africa were $7.2 billion, down 9 percent, without adjusting for foreign exchange effects.<\/p>\n

In the Americas revenue declined 4 percent to $10.4 billion while Asia-Pacific revenues rose 1 percent to $6.5 billion.<\/p>\n

IBM reiterated its outlook for the year, targeting earnings per share of at least $15.10.<\/p>\n

IBM stock lost 3.31 percent to $204 in after hours trading. It closed up 1 percent at $211 on Tuesday.<\/p>\n

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IBM launches research lab in Kenya<\/strong><\/a><\/p>\n

IBM raises full-year earnings<\/strong><\/a><\/p>\n

IBM SA announces new GM<\/strong><\/a><\/p>\n

IBM to buy software company, Tealeaf<\/strong><\/a><\/p>\n

IBM to tackle oil data explosion<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

IBM posted a quarterly revenue miss and barely beat analyst expectations for earnings per share as customers put off spending on big ticket items and a stronger dollar hit the company’s top line.<\/p>\n","protected":false},"author":7,"featured_media":10142,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[25,753,4312],"class_list":["post-24374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hardware","tag-active","tag-ibm","tag-quarterly-results"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/24374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=24374"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/24374\/revisions"}],"predecessor-version":[{"id":24449,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/24374\/revisions\/24449"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/10142"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=24374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=24374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=24374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}