International Business Machines Corp. (NYSE:IBM) released its first-quarter results after Wednesday's closing bell. Here's a look at the details from the report.
The Details: IBM reported quarterly earnings of $1.60 per share, which beat the analyst consensus estimate of $1.40. Quarterly revenue of $14.54 billion beat the analyst consensus estimate of $14.4 billion.
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For the first quarter, IBM reported:
Software — revenues of $6.3 billion, up 7%, up 9% at constant currency:
- Hybrid Cloud (Red Hat) up 12 %, up 13% at constant currency
- Automation up 14%, up 15% at constant currency
- Data up 5%, up 7% at constant currency
- Transaction Processing flat, up 2% at constant currency
Consulting — revenues of $5.1 billion, down 2%, flat at constant currency:
- Strategy and Technology down 3%, down 1% at constant currency
- Intelligent Operations down 2%, flat at constant currency
Infrastructure — revenues of $2.9 billion, down 6%, down 4% at constant currency:
- Hybrid Infrastructure down 9%, down 7% at constant currency
— IBM Z down 15%, down 14% at constant currency
— Distributed Infrastructure down 5%, down 4% at constant currency - Infrastructure Support down 3%, flat at constant currency
Financing — revenues of $0.2 billion, down 1%, up 2% at constant currency
“Revenue growth, once again led by Software, combined with our productivity initiatives, drove significant gross margin expansion and operating leverage in the quarter,” said James Kavanaugh, IBM CFO.
“With our focus on the fundamentals of our business, we continue to maintain a strong liquidity position and yield solid free cash flow. This enables us to both invest in our business and return value to shareholders through dividends,” Kavanaugh added.
Outlook: IBM sees second-quarter revenue in a range of $16.4 billion to $16.75 billion, versus the $16.33 billion estimate.
IBM Price Action: According to data from Benzinga Pro, IBM stock was down 5.45% after-hours at $232.10 on Wednesday.
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