IBM Is Rising Again

IBM is rising again. This afternoon the company reported a GAAP EPS from continuing operations of $2.61, and an Operating (non-GAAP) EPS of $3.08; both up 5%. Pre-tax margins expanded more than 100 basis points year to year.

Meanwhile, revenue reached $20.0 billion, up 4% (up 2% adjusting for currency). Strategic imperatives revenue reached $39.0 billion over last 12 months, up 15% (up 12% adjusting for currency); represents 48% of IBM revenue.

That’s a gradual improvement from the previous quarters, suggesting that Big Blue has already turned the corner.

“We delivered strong revenue and profit growth in the quarter, underscoring IBM’s progress and momentum in the emerging, high-value segments of the IT industry,” said Ginni Rometty, IBM chairman, president and chief executive officer. “More clients are engaging IBM on their journey to the cloud, and deploying IBM Cloud, Watson AI, analytics, blockchain and security solutions. This demonstrates IBM’s unique leadership in providing innovative technology coupled with deep industry expertise, trust and security.”

Wall Street has taken notice sending the company’s shares higher after the posting of the financial report.

Over the last six years, IBM has invested $71 billions in new technologies, which have begun to win big contracts with institutional and corporate clients worth over $100 million in the quarter.

Like a $1 billion contract from the Australian government. It’s a cross-brand solutions deal (hardware/software/solutions including joint government-IBM projects in cloud, AI and blockchain).

Then there’s a $500 million, 10-year contract for cloud computing with Banca Carige, one of the major banks in Italy.

And a cloud contract worth $320 million with KMD, Denmark’s largets technology company, to bring them the benefits of cloud.

The winning of big contracts for its strategic initiatives has helped improve IBM’s financials—see tables.

IBM’s Key Financial Metrics 7/18/2018

Forward PE Operating Margin Revenues (ttm) Qrtrly Revenue Growth (yoy) Div&yield
10.26 15.11% $80.06B 5.10% 4.50%


IBM’s Key Financial Metrics 7/14/2017

Forward PE Operating Margin Revenues (ttm) Qrtrly Revenue Growth (yoy) Div&yield
11.08 16.99% $79.39B -2.80% 3.91%


IBM’s Key Financial Metrics 1/17/2016

Forward PE Operating Margin Revenues (ttm) Qrtrly Revenue Growth (yoy) Div&yield
8.78 20.88% $83.80B -13.90% 3.91%


And they will they are helping IBM’s rise again on main street and the Wall Street.

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Article Credit: Forbes

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