Breaking: IBM Announces Q2 2012 Results With Diluted Earnings Of $3.34 Per Share, Net Income Was $3.9 Billion

Posted on Jul 18 2012 - 8:32pm by Editorial Staff

As expected, IBM just announced its quarter second results with diluted earnings of $3.34 per share, compared with diluted earnings of $3.00 per share in the second quarter of 2011, an increase of 11 percent. Operating (non-GAAP) diluted earnings were $3.51 per share, compared with operating diluted earnings of $3.09 per share in the second quarter of 2011, an increase of 14 percent.

Second-quarter net income was $3.9 billion compared with $3.7 billion in the second quarter of 2011, an increase of 6 percent. Operating (non-GAAP) net income was $4.1 billion compared with $3.8 billion in the second quarter of 2011, an increase of 8 percent. Total revenues for the second quarter of 2012 of $25.8 billion were down 3 percent (up 1 percent, adjusting for currency) from the second quarter of 2011.

Second-quarter operating (non-GAAP) diluted earnings exclude $0.17 per share of charges: $0.11 per share for the amortization of purchased intangible assets and other acquisition-related charges, and $0.06 per share for retirement-related charges driven by changes to plan assets and liabilities primarily related to market performance.

Quarter Highlights:

Diluted EPS:

  • GAAP: $3.34, up 11 percent;
  • Operating (non-GAAP): $3.51, up 14 percent;

Net income:

  • GAAP: $3.9 billion, up 6 percent;
  • Operating (non-GAAP): $4.1 billion, up 8 percent;

Gross profit margin:

  • GAAP: 47.6 percent, up 1.2 points;
  • Operating (non-GAAP): 48.2 percent, up 1.5 points;
  • Revenue: $25.8 billion, down 3 percent, up 1 percent adjusting for currency;
  • Free cash flow of $3.7 billion, up 9 percent;
  • Software revenue, flat, up 4 percent adjusting for currency;
  • Services revenue down 3 percent, up 1 percent adjusting for currency:
  • Services pre-tax income up 18 percent;
  • Services backlog of $136 billion, down 6 percent, flat adjusting for currency;
  • Systems and Technology revenue down 9 percent, down 7 percent adjusting for currency;
  • Growth markets revenue up 2 percent, up 8 percent adjusting for currency;
  • Business analytics revenue up 13 percent in the first half;
  • Smarter Planet revenue up more than 20 percent in the first half;
  • Cloud revenue doubled first-half 2011 revenue;
  • Full-year 2012 operating (non-GAAP) EPS expectations raised to at least $15.10 from at least $15.00.

The company last traded at 188.20 +4.55 (2.48%). The shares up 1.4% after Q2 results with shares extend gains after hours, rise 2.1%.

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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.