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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