IBM Quarterly Earnings Analysis: By the Numbers

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The 96-rack IBM Blue Gene Q Sequoia supercomputer at Lawrence Livermore National Laboratory April 25, 2013 in Livermore, CA. The
The 96-rack IBM Blue Gene Q Sequoia supercomputer at Lawrence Livermore National Laboratory - one of the fastest computers in the world.

International Business Machines (IBM) just reported its preliminary financial results for the quarter that ended Sept. 30, based upon which we provide a unique corporate earnings release based analysis of its performance. Our analysis focuses on the company's performance for the same quarterly period on a year-on-year basis (unless stated otherwise).

This earnings release follows the earnings announcements from the following peers of International Business Machines Corporation: SAP AG (SAP).

Highlights

  • Summary numbers: Revenues of $22.397 billion, Net Earnings of $3.455 billion and EPS of $0.02. Performance focus more on top-line than bottom-line: same period year-on-year change of revenue of -5.58% vs. change in earnings of -14.50%.

  • Gross margins now 48.55% from 52.36% compared to the same period last year, EBITDA margins now 18.93% from 24.27%

  • Earnings decline from operating margin decreases as well as from unusual items

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