IBM Q3 2012 Results: EPS Was $3.33, Net Income Was $3.8 Billion

Posted on Oct 16 2012 - 8:16pm by Editorial Staff

IBM today announced its third quarter 2012 results. The company reports the diluted earnings of $3.33 per share, a year-to-year increase of 4 percent, or $3.44 per share. Operating (non-GAAP) diluted earnings were $3.62 per share, compared with operating diluted earnings of $3.28 per share in the third quarter of 2011, an increase of 10 percent.

The company reported the net income of $3.8 billion, flat year-to-year; or $3.9 billion, up 3 percent excluding the impact of UK pension-related charges. Operating (non-GAAP) net income was $4.2 billion compared with $4.0 billion in the third quarter of 2011, an increase of 5 percent. Total revenues for the third quarter of 2012 of $24.7 billion were down 5 percent (down 2 percent, adjusting for currency) from the third quarter of 2011.

Quarter Highlights:

Diluted EPS:

  • GAAP: $3.33, up 4 percent; $3.44, up 8 percent excluding UK pension-related charges;
  • Operating (non-GAAP): $3.62, up 10 percent;

Net income:

  • GAAP: $3.8 billion, flat; $3.9 billion, up 3 percent excluding UK pension-related charges;
  • Operating (non-GAAP): $4.2 billion, up 5 percent;

Gross profit margin:

  • GAAP: 47.4 percent, up 0.9 points;
  • Operating (non-GAAP): 48.1 percent, up 1.2 points;
  • Revenue: $24.7 billion, down 5 percent, down 2 percent adjusting for currency;
  • Negative currency impact of nearly $1 billion;
  • Divestiture of Retail Store Solutions (RSS) reduced revenue by 1 percent;
  • Software revenue down 1 percent, up 3 percent adjusting for currency;
  • Services revenue down 5 percent, flat adjusting for currency;
  • Services backlog of $138 billion, up 1 percent;
  • Systems and Technology revenue down 13 percent, down 12 percent adjusting for currency;
  • Growth markets revenue down 1 percent, up 4 percent adjusting for currency;
  • BRIC countries up 4 percent, up 11 percent adjusting for currency;
  • Business analytics revenue up 14 percent year to date;
  • Smarter Planet revenue up more than 20 percent year to date
  • Cloud revenue year to date has exceeded full-year 2011 revenue;
  • Reiterating full-year 2012 operating (non-GAAP) EPS expectation of at least $15.10.
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