We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| International Business Machines Corporation | LSE:IBM | London | Ordinary Share | COM STK USD0.20 (CDI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 118.95 | 3,783 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Computer Communication Equip | 61.86B | 7.5B | 8.1833 | 20.43 | 153.23B |
TIDMIBM
IBM (NYSE:IBM)
Best Year-to-Year Gross Margin Performance in 3 Years, Reflecting Higher Value Business
Highlights
Hot Features
Premium
-- GAAP EPS from continuing operations of $2.94; Operating (non-GAAP) EPS
of $3.42
-- Revenue of $18.8 billion, down 2 percent (flat adjusting for currency)
-- Strategic imperatives revenue of $39.5 billion over last 12 months, up
13 percent (up 11 percent adjusting for currency)
-- Cloud revenue of $19.0 billion over last 12 months, up 20 percent (up
18 percent adjusting for currency)
-- As-a-service annual exit run rate for cloud revenue of $11.4 billion
in the quarter, up 21 percent year to year (up 24 percent adjusting
for currency)
-- Strong services gross profit margin expansion year to year
-- Maintains full-year operating (non-GAAP) EPS and free cash flow
expectations
IBM (NYSE:IBM) today announced third-quarter results.
"IBM's progress and momentum this year in the emerging, high-value segments of the IT industry are driven by our innovative technology, deep industry expertise and commitment to trust and security," said Ginni Rometty, IBM chairman, president and chief executive officer. "Our leadership in the technology and services that deliver hybrid cloud, AI, blockchain, analytics and security has helped drive our overall performance, and is helping our clients unleash the full business value of these innovations."
THIRD QUARTER 2018
Pre-tax Gross
Diluted Net Pre-tax Income Profit
EPS Income Income Margin Margin
GAAP from Continuing $2.94 $2.7B $3.0B 16.0% 46.9%
Operations
Year/Year 1% -1% -2% 0.0Pts 0.0Pts
Operating (Non-GAAP) $3.42 $3.1B $3.6B 19.2% 47.4%
Year/Year 5% 3% 1% 0.5Pts 0.0Pts
"In the quarter, we again expanded our overall operating pre-tax income margin year to year, and produced our strongest year-to-year gross margin performance in three years," said James Kavanaugh, IBM senior vice president and chief financial officer. "At the same time, with our strong cash generation, we increased our capital investment in the business through the first three quarters and continued to return capital to shareholders."
Strategic Imperatives Revenue
Strategic imperatives revenue over the last 12 months was $39.5 billion, up 13 percent (up 11 percent adjusting for currency). Total cloud revenue over the last 12 months was $19.0 billion, up 20 percent (up 18 percent adjusting for currency), with $8.1 billion from hardware, software and services to enable IBM clients to implement hybrid cloud solutions across public, private and multi-cloud environments, and $10.9 billion delivered as a service. The annual exit run rate for as-a-service revenue increased in the quarter to $11.4 billion, up 21 percent (up 24 percent adjusting for currency).
Cash Flow and Balance Sheet
In the third quarter, the company generated net cash from operating activities of $4.2 billion, or $3.1 billion, excluding Global Financing receivables. IBM's free cash flow was $2.2 billion. IBM returned $2.1 billion to shareholders through $1.4 billion in dividends and $0.6 billion in gross share repurchases. At the end of September 2018, IBM had $1.4 billion remaining in the current share repurchase authorization.
IBM ended the third quarter with $14.7 billion of cash on hand. Debt totaled $46.9 billion, including Global Financing debt of $30.4 billion. The balance sheet remains strong and is well positioned for the long term.
Segment Results for Third Quarter
-- Cognitive Solutions (includes solutions software and transaction
processing software) -- revenues of $4.1 billion, down 6 percent
(down 5 percent adjusting for currency), with growth in Watson health,
security solutions, and key strategic areas in analytics.
-- Global Business Services (includes consulting, application
management and global process services) -- revenues of $4.1
billion, up 1 percent (up 3 percent adjusting for currency), led by
consulting. Gross profit margin increased 270 basis points.
-- Technology Services & Cloud Platforms (includes
infrastructure services, technical support services and integration
software) -- revenues of $8.3 billion, down 2 percent (flat year
to year adjusting for currency), with growth in cloud revenue. Gross
profit margin increased 120 basis points.
-- Systems (includes systems hardware and operating systems software)
-- revenues of $1.7 billion, up 1 percent (up 2 percent adjusting
for currency), driven by growth in Power and IBM Z.
-- Global Financing (includes financing and used equipment sales) --
revenues of $388 million, down 9 percent (down 7 percent adjusting for
currency).
Full-Year 2018 Expectations
The company expects operating (non-GAAP) diluted earnings per share of at least $13.80, and GAAP diluted earnings per share of at least $11.60. Operating (non-GAAP) diluted earnings per share exclude $2.20 per share of charges for amortization of purchased intangible assets, other acquisition-related charges, retirement-related charges and any one-time impacts from the enactment of U.S. Tax Reform. GAAP expectations exclude any fourth-quarter one-time impacts from the enactment of U.S. Tax Reform.
IBM expects free cash flow of approximately $12 billion, with a realization rate greater than 100 percent.
Year-To-Date 2018 Results
Consolidated diluted earnings per share from continuing operations was $7.36 compared to $7.24, up 2 percent year to year. Consolidated net income was $6.8 billion, flat year to year. Revenues for the nine-month period totaled $57.8 billion, an increase of 2 percent year to year (flat year to year adjusting for currency), compared with $56.6 billion for the first nine months of 2017.
Operating (non-GAAP) diluted earnings per share from continuing operations was $8.96 compared with $8.54 per diluted share for the 2017 period, an increase of 5 percent. Operating (non-GAAP) net income for the nine months ended September 30, 2018 was $8.2 billion compared with $8.0 billion in the year-ago period, an increase of 3 percent.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company's current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: a downturn in economic environment and client spending budgets; the company's failure to meet growth and productivity objectives; a failure of the company's innovation initiatives; damage to the company's reputation; risks from investing in growth opportunities; failure of the company's intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and data privacy considerations; fluctuations in financial results, impact of local legal, economic, political and health conditions; adverse effects from environmental matters, tax matters and the company's pension plans; ineffective internal controls; the company's use of accounting estimates; the company's ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product quality issues; impacts of business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels and ecosystems; the company's ability to successfully manage acquisitions, alliances and dispositions; risks from legal proceedings; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company's Form 10-Qs, Form 10-K and in the company's other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements.
Presentation of Information in this Press Release
In an effort to provide investors with additional information regarding the company's results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information which management believes provides useful information to investors:
IBM results --
-- presenting operating (non-GAAP) earnings per share amounts and related
income statement items;
-- adjusting for free cash flow;
-- adjusting for currency (i.e., at constant currency).
Free cash flow guidance is derived using an estimate of profit, working capital and operational cash outflows. The company views Global Financing receivables as a profit-generating investment, which it seeks to maximize and therefore it is not considered when formulating guidance for free cash flow. As a result, the company does not estimate a GAAP Net Cash from Operations expectation metric.
The rationale for management's use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.
Conference Call and Webcast
IBM's regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. EDT, today. The Webcast may be accessed via a link at http://www.ibm.com/investor/events/earnings/3q18.html. Presentation charts will be available shortly before the Webcast.
Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).
INTERNATIONAL
BUSINESS
MACHINES
CORPORATION
COMPARATIVE
FINANCIAL
RESULTS
(Unaudited;
Dollars
in millions
except per
share
amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2018 2017 2018 2017
REVENUE
Cognitive $ 4,148 $ 4,400 $ 13,027 $ 13,021
Solutions
Global 4,130 4,093 12,495 12,196
Business
Services
Technology 8,292 8,457 25,533 25,079
Services
&
Cloud
Platforms
Systems 1,736 1,721 5,412 4,863
Global 388 427 1,188 1,246
Financing
Other 62 56 176 192
TOTAL 18,756 19,153 57,830 56,597
REVENUE
GROSS 8,803 8,981 * 26,249 25,894 *
PROFIT
GROSS
PROFIT
MARGIN
Cognitive 76.0 % 78.7 % * 76.7 % 78.3 % *
Solutions
Global 29.8 % 27.1 % * 26.3 % 25.1 % *
Business
Services
Technology 42.1 % 40.9 % * 39.9 % 40.1 % *
Services
&
Cloud
Platforms
Systems 52.7 % 53.6 % * 49.3 % 51.5 % *
Global 26.3 % 25.2 % * 29.1 % 29.2 % *
Financing
TOTAL GROSS 46.9 % 46.9 % * 45.4 % 45.8 % *
PROFIT
MARGIN
EXPENSE AND
OTHER
INCOME
S,G&A 4,363 4,606 * 14,665 14,666 *
R,D&E 1,252 1,291 * 4,021 4,212 *
Intellectual
property
and
custom (275 ) (308 ) (842 ) (1,118 )
development
income
Other 275 159 * 968 751 *
(income)
and expense
Interest 191 168 530 451
expense
TOTAL 5,807 5,917 * 19,341 18,962 *
EXPENSE
AND
OTHER
INCOME
INCOME FROM
CONTINUING
OPERATIONS
BEFORE 2,996 3,065 6,908 6,931
INCOME
TAXES
Pre-tax 16.0 % 16.0 % 11.9 % 12.2 %
margin
Provision 304 339 138 120
for
income
taxes
Effective 10.2 % 11.0 % 2.0 % 1.7 %
tax rate
INCOME FROM $ 2,692 $ 2,726 $ 6,770 $ 6,811
CONTINUING
OPERATIONS
DISCONTINUED
OPERATIONS
Income/(Loss) 2 0 7 (3 )
from
discontinued
operations,
net
of taxes
NET INCOME $ 2,694 $ 2,726 $ 6,777 $ 6,807
EARNINGS
PER
SHARE
OF COMMON
STOCK:
Assuming
Dilution
Continuing $ 2.94 $ 2.92 $ 7.36 $ 7.24
Operations
Discontinued $ 0.00 $ 0.00 $ 0.01 $ 0.00
Operations
TOTAL $ 2.94 $ 2.92 $ 7.37 $ 7.24
Basic
Continuing $ 2.95 $ 2.93 $ 7.39 $ 7.28
Operations
Discontinued $ 0.00 $ 0.00 $ 0.01 $ 0.00
Operations
TOTAL $ 2.95 $ 2.93 $ 7.40 $ 7.28
WEIGHTED-AVERAGE
NUMBER
OF COMMON
SHARES
OUTSTANDING
(M's):
Assuming 915.2 933.2 920.0 940.2
Dilution
Basic 911.2 929.4 915.6 935.6
* Recast to
reflect
adoption
of the FASB
guidance
on
presentation
of net
postretirement
benefit
cost.
INTERNATIONAL BUSINESS
MACHINES CORPORATION
CONDENSED CONSOLIDATED
BALANCE SHEET
(Unaudited)
At At
(Dollars in Millions) September 30, December 31,
2018 2017
ASSETS:
Current Assets:
Cash and cash equivalents $ 11,563 $ 11,972
Restricted cash 168 262 *
Marketable securities 2,932 608
Notes and accounts receivable 7,071 8,928
- trade, net
Short-term financing 19,249 21,721
receivables, net
Other accounts receivable, net 767 981
Inventory 1,893 1,583
Deferred Costs 2,227 1,820 **
Prepaid expenses and 2,388 1,860 * **
other current assets
Total Current Assets 48,257 49,735
Property, plant and 10,949 11,116
equipment, net
Long-term financing 8,179 9,550
receivables, net
Prepaid pension assets 5,655 4,643
Deferred costs 2,581 2,136 **
Deferred taxes 4,436 4,862
Goodwill and intangibles, net 39,660 40,531
Investments and sundry assets 2,272 2,783 **
Total Assets $ 121,990 $ 125,356
LIABILITIES:
Current Liabilities:
Taxes $ 2,502 $ 4,219
Short-term debt 10,932 6,987
Accounts payable 5,384 6,451
Deferred income 10,704 11,552
Other liabilities 7,300 8,153
Total Current Liabilities 36,822 37,363
Long-term debt 35,989 39,837
Retirement related obligations 15,774 16,720
Deferred income 3,507 3,746
Other liabilities 9,979 9,965
Total Liabilities 102,071 107,631
EQUITY:
IBM Stockholders' Equity:
Common stock 54,987 54,566
Retained earnings 158,612 153,126
Treasury stock -- at cost (165,995 ) (163,507 )
Accumulated other comprehensive (27,820 ) (26,592 )
income/(loss)
Total IBM Stockholders' Equity 19,784 17,594
Noncontrolling interests 134 131
Total Equity 19,918 17,725
Total Liabilities and Equity $ 121,990 $ 125,356
* Recast to reflect
adoption of the
FASB guidance on
restricted cash.
** Recast to conform to current
period presentation.
INTERNATIONAL
BUSINESS
MACHINES
CORPORATION
CASH FLOW
ANALYSIS
(Unaudited)
Three Months Ended Nine Months Ended
(Dollars in September 30, September 30,
Millions)
2018 2017 2018 2017
Net Cash $ 4,232 $ 3,570 $ 11,128 $ 10,991
Provided
by
Operating
Activities
per GAAP:
Less: 1,096 258 2,874 2,468
change
in Global
Financing
(GF)
Receivables
Capital (942 ) (780 ) (2,839 ) (2,347 )
Expenditures,
Net
Free Cash 2,194 2,532 5,415 6,176
Flow
Acquisitions (1 ) (274 ) (123 ) (442 )
Divestitures - 6 - 35
Dividends (1,431 ) (1,396 ) (4,250 ) (4,119 )
Share (627 ) (949 ) (2,393 ) (3,674 )
Repurchase
Non-GF Debt 2,218 (467 ) 1,607 1,896
Other 382 (216 ) * 1,564 3,124 *
(includes
GF
Net
Receivables
and GF
Debt)
Change in
Cash,
Cash
Equivalents,
Restricted
Cash
and $ 2,736 ($763 ) * $ 1,820 $ 2,995 *
Short-term
Marketable
Securities
* Recast to
reflect
adoption
of the
FASB guidance
on
restricted
cash.
INTERNATIONAL
BUSINESS
MACHINES CORPORATION
CASH FLOW
(Unaudited)
Three Months Ended Nine Months Ended
(Dollars in September 30, September 30,
Millions)
2018 2017 2018 2017
Net Income from $ 2,694 $ 2,726 $ 6,777 $ 6,807
Operations
Depreciation/Amortization 1,138 1,175 3,368 3,392
of Intangibles
Stock-based 129 123 371 388
Compensation
Working Capital (825 ) (713 ) (2,261 ) (2,064 )
/ Other
Global Financing A/R 1,096 258 2,874 2,468
Net Cash Provided by $ 4,232 $ 3,570 $ 11,128 $ 10,991
Operating Activities
Capital (942 ) (780 ) (2,839 ) (2,347 )
Expenditures,
net
of payments
& proceeds
Divestitures, net of - 6 - 35
cash transferred
Acquisitions, net (1 ) (274 ) (123 ) (442 )
of cash acquired
Marketable (2,026 ) (858 ) * (2,406 ) (517 ) *
Securities
/
Other Investments,
net
Net Cash Used ($2,969 ) ($1,906 ) * ($5,368 ) ($3,271 ) *
in Investing
Activities
Debt, net of 1,595 (446 ) 845 2,310
payments
& proceeds
Dividends (1,431 ) (1,396 ) (4,250 ) (4,119 )
Common Stock (627 ) (949 ) (2,393 ) (3,674 )
Repurchases
Common Stock 26 35 (66 ) (15 )
Transactions
- Other
Net Cash Used ($437 ) ($2,756 ) ($5,864 ) ($5,499 )
in Financing
Activities
Effect of Exchange (55 ) 328 (399 ) 875
Rate
changes on Cash
Net Change in Cash, $ 771 ($764 ) * ($503 ) $ 3,096 *
Cash Equivalents
and Restricted Cash
* Recast to reflect
adoption of the
FASB guidance on
restricted cash.
INTERNATIONAL
BUSINESS
MACHINES
CORPORATION
SEGMENT
DATA
(Unaudited)
THIRD - QUARTER 2018
Technology
Global Services &
(Dollars Cognitive Business Cloud Global
in
Millions)
Solutions Services Platforms Systems Financing
Revenue
External $ 4,148 $ 4,130 $ 8,292 $ 1,736 $ 388
Internal 639 77 240 181 338
Total $ 4,787 $ 4,207 $ 8,533 $ 1,917 $ 726
Segment
Revenue
Pre-tax 1,629 579 1,075 209 308
Income
from
Continuing
Operations
Pre-tax 34.0 % 13.8 % 12.6 % 10.9 % 42.5 %
margin
Change (5.7 )% 0.9 % (1.9 )% 0.9 % (9.0 )%
YTY
Revenue
-
External
Change (4.6 )% 2.5 % 0.2 % 1.8 % (7.1 )%
YTY
Revenue
-
External
@constant
currency
THIRD - QUARTER 2017
Technology
Global Services &
(Dollars Cognitive Business Cloud Global
in
Millions)
Solutions Services Platforms Systems Financing
Revenue
External $ 4,400 $ 4,093 $ 8,457 $ 1,721 $ 427
Internal 629 92 164 227 272
Total $ 5,030 $ 4,185 $ 8,621 $ 1,948 $ 698
Segment
Revenue
Pre-tax 1,643 442 1,177 337 243
Income
from
Continuing
Operations
*
Pre-tax 32.7 % 10.6 % 13.7 % 17.3 % 34.8 %
margin
*
* Recast
to
reflect
adoption
of the
FASB
guidance
on
presentation
of net
postretirement
benefit
cost.
INTERNATIONAL
BUSINESS
MACHINES
CORPORATION
SEGMENT
DATA
(Unaudited)
NINE - MONTHS 2018
Technology
Global Services &
(Dollars Cognitive Business Cloud Global
in
Millions)
Solutions Services Platforms Systems Financing
Revenue
External $ 13,027 $ 12,495 $ 25,533 $ 5,412 $ 1,188
Internal 2,122 249 550 576 1,240
Total $ 15,149 $ 12,744 $ 26,083 $ 5,989 $ 2,428
Segment
Revenue
Pre-tax 4,718 1,109 2,395 352 1,042
Income
from
Continuing
Operations
Pre-tax 31.1 % 8.7 % 9.2 % 5.9 % 42.9 %
margin
Change 0.0 % 2.4 % 1.8 % 11.3 % (4.7 )%
YTY
Revenue
-
External
Change (1.4 )% 0.5 % (0.1 )% 9.9 % (5.8 )%
YTY
Revenue
-
External
@constant
currency
NINE - MONTHS 2017
Technology
Global Services &
(Dollars Cognitive Business Cloud Global
in
Millions)
Solutions Services Platforms Systems Financing
Revenue
External $ 13,021 $ 12,196 $ 25,079 $ 4,863 $ 1,246
Internal 2,001 271 497 571 925
Total $ 15,022 $ 12,467 $ 25,576 $ 5,434 $ 2,171
Segment
Revenue
Pre-tax 4,522 1,035 2,845 222 835
Income
from
Continuing
Operations
*
Pre-tax 30.1 % 8.3 % 11.1 % 4.1 % 38.5 %
margin
*
* Recast
to
reflect
adoption
of the
FASB
guidance
on
presentation
of net
postretirement
benefit
cost.
INTERNATIONAL
BUSINESS
MACHINES
CORPORATION
U.S. GAAP
TO
OPERATING
(Non-GAAP)
RESULTS
RECONCILIATION
(Unaudited;
Dollars
in
millions
except
per
share
amounts)
THIRD - QUARTER 2018
CONTINUING OPERATIONS
Acquisition- Retirement- Tax Reform
Related Related One-Time Operating
GAAP Adjustments* Adjustments** Impact (Non-GAAP)
Gross $ 8,803 $ 96 - - $ 8,899
Profit
Gross 46.9 % 0.5Pts - - 47.4 %
Profit
Margin
S,G&A 4,363 (112 ) - - 4,251
R,D&E 1,252 - - - 1,252
Other 275 (1 ) (389 ) - (115 )
(Income)
& Expense
Total 5,807 (113 ) (389 ) - 5,304
Expense
&
Other
(Income)
Pre-tax 2,996 209 389 - 3,594
Income
from
Continuing
Operations
Pre-tax 16.0 % 1.1Pts 2.1Pts - 19.2 %
Income
Margin
from
Continuing
Operations
Provision 304 56 100 - 460
for
Income
Taxes***
Effective 10.2 % 1.0Pts 1.7Pts - 12.8 %
Tax Rate
Income 2,692 153 289 - 3,134
from
Continuing
Operations
Income 14.4 % 0.8Pts 1.5Pts - 16.7 %
Margin
from
Continuing
Operations
Diluted $ 2.94 $ 0.17 $ 0.31 - $ 3.42
Earnings
Per
Share:
Continuing
Operations
THIRD - QUARTER 2017
CONTINUING OPERATIONS
Acquisition- Retirement-
Related Related Operating
GAAP Adjustments* Adjustments** (Non-GAAP)
Gross $ 8,981 $ 114 - $ 9,095
Profit
Gross 46.9 % 0.6Pts - 47.5 %
Profit
Margin
S,G&A 4,606 (125 ) - 4,482
R,D&E 1,291 - - 1,291
Other 159 - (273 ) (114 )
(Income)
& Expense
Total 5,917 (125 ) (273 ) 5,519
Expense
&
Other
(Income)
Pre-tax 3,065 238 273 3,576
Income
from
Continuing
Operations
Pre-tax 16.0 % 1.2Pts 1.4Pts 18.7 %
Income
Margin
from
Continuing
Operations
Provision 339 79 113 531
for
Income
Taxes***
Effective 11.0 % 1.5Pts 2.3Pts 14.8 %
Tax Rate
Income 2,726 159 160 3,045
from
Continuing
Operations
Income 14.2 % 0.8Pts 0.8Pts 15.9 %
Margin
from
Continuing
Operations
Diluted $ 2.92 $ 0.17 $ 0.17 $ 3.26
Earnings
Per
Share:
Continuing
Operations
* Includes amortization of purchased intangible assets, in
process R&D, severance cost for acquired employees,
vacant space for acquired companies, deal costs
and acquisition integration tax charges.
** Includes retirement-related interest cost, expected
return on plan assets, recognized actuarial
losses or gains, amortization of transition
assets, other settlements, curtailments,
amortization of prior service cost and insolvency
insurance. 2017 adjustments were recast
to reflect the adoption of the FASB guidance
on net postretirement benefit cost.
*** Tax impact on operating (non-GAAP) pre-tax income from continuing
operations is calculated under the same accounting principles
applied to the As Reported pre-tax income under ASC 740, which
employs an annual effective tax rate method to the results.
INTERNATIONAL
BUSINESS
MACHINES
CORPORATION
U.S. GAAP
TO
OPERATING
(Non-GAAP)
RESULTS
RECONCILIATION
(Unaudited;
Dollars
in
millions
except
per
share
amounts)
NINE - MONTHS 2018
CONTINUING OPERATIONS
Acquisition- Retirement- Tax Reform
Related Related One-Time Operating
GAAP Adjustments* Adjustments** Impact (Non-GAAP)
Gross $ 26,249 $ 283 - - $ 26,531
Profit
Gross 45.4 % 0.5Pts - - 45.9 %
Profit
Margin
S,G&A 14,665 (332 ) - - 14,333
R,D&E 4,021 - - - 4,021
Other 968 (1 ) (1,185 ) - (219 )
(Income)
& Expense
Total 19,341 (333 ) (1,185 ) - 17,822
Expense
&
Other
(Income)
Pre-tax 6,908 616 1,185 - 8,709
Income
from
Continuing
Operations
Pre-tax 11.9 % 1.1Pts 2.0Pts - 15.1 %
Income
Margin
from
Continuing
Operations
Provision 138 138 285 (93 ) 468
for
Income
Taxes***
Effective 2.0 % 1.4Pts 3.0Pts (1.1)Pts 5.4 %
Tax Rate
Income 6,770 478 900 93 8,241
from
Continuing
Operations
Income 11.7 % 0.8Pts 1.6Pts 0.2Pts 14.2 %
Margin
from
Continuing
Operations
Diluted $ 7.36 $ 0.52 $ 0.98 $ 0.10 $ 8.96
Earnings
Per
Share:
Continuing
Operations
NINE - MONTHS 2017
CONTINUING OPERATIONS
Acquisition- Retirement-
Related Related Operating
GAAP Adjustments* Adjustments** (Non-GAAP)
Gross $ 25,894 $ 349 - $ 26,243
Profit
Gross 45.8 % 0.6Pts - 46.4 %
Profit
Margin
S,G&A 14,666 (393 ) - 14,273
R,D&E 4,212 - - 4,212
Other 751 (7 ) (969 ) (225 )
(Income)
& Expense
Total 18,962 (401 ) (969 ) 17,593
Expense
&
Other
(Income)
Pre-Tax 6,931 750 969 8,650
Income
from
Continuing
Operations
Pre-tax 12.2 % 1.3Pts 1.7Pts 15.3 %
Income
Margin
from
Continuing
Operations
Provision 120 212 288 621
for
Income
Taxes***
Effective 1.7 % 2.3Pts 3.1Pts 7.2 %
Tax Rate
Income 6,811 537 681 8,030
from
Continuing
Operations
Income 12.0 % 0.9Pts 1.2Pts 14.2 %
Margin
from
Continuing
Operations
Diluted $ 7.24 $ 0.57 $ 0.73 $ 8.54
Earnings
Per
Share:
Continuing
Operations
* Includes amortization of purchased intangible assets, in
process R&D, severance cost for acquired employees,
vacant space for acquired companies, deal costs
and acquisition integration tax charges.
** Includes retirement-related interest cost, expected
return on plan assets, recognized actuarial
losses or gains, amortization of transition
assets, other settlements, curtailments,
amortization of prior service cost and insolvency
insurance. 2017 adjustments were recast
to reflect the adoption of the FASB guidance
on net postretirement benefit cost.
*** Tax impact on operating (non-GAAP) pre-tax income from continuing
operations is calculated under the same accounting principles
applied to the As Reported pre-tax income under ASC 740, which
employs an annual effective tax rate method to the results.
INTERNATIONAL BUSINESS MACHINES CORPORATION
RECONCILIATION OF OPERATING EARNINGS PER SHARE
(Unaudited)
2018
EPS Guidance Expectations
GAAP Diluted EPS at least $11.60
Operating EPS (non-GAAP) at least $13.80
Adjustments
Acquisition-related Charges * $0.78
Non-Operating Retirement-Related Items $1.32
Year-to-Date Tax Reform One-time Charge $0.10
* Includes acquisitions as of September 30, 2018
IBMIan Colley, 914-434-3043colley@us.ibm.comorJohn Bukovinsky, 732-618-3531jbuko@us.ibm.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20181016006043/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
October 17, 2018 02:00 ET (06:00 GMT)
1 Year International Business M... Chart |
1 Month International Business M... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
