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Last Update: 23-Jan-13 08:12 ET
IBM shares rise 4% following better than expected earnings and upside guidance
IBM (IBM $2.04.25 +8.17) reported fourth quarter earnings of $5.39 per share, excluding non-recurring items, $0.14 better than the Capital IQ consensus of $5.25, while revenues fell 0.6% year/year to $29.3 billion versus the $29.09 bln consensus; flat adjusting for currency; up 1% excluding divested RSS business adjusting for currency. Free cash flow of $9.5 billion, up $0.6 billion; Software revenue up 3%, up 4% adjusting for currency; Services revenue down 2%, down 1% adjusting for currency; Services backlog of $140 billion, flat, up $1 billion adjusting for currency; Systems and Technology revenue down 1%, up 4% excluding RSS: System z mainframe up 56%By region: The Americas' fourth-quarter revenues were $12.5 billion, flat (up 1%, adjusting for currency) from the 2011 period. Revenues from Europe/Middle East/Africa were $9.1 billion, down 5% (down 3%, adjusting for currency). Asia-Pacific revenues increased 4% (up 5%, adjusting for currency) to $7.0 billion. OEM revenues were $679 million, down 5% compared with the 2011 fourth quarter. Revenues from the co's growth markets increased 7%. Revenues in the BRIC countries — Brazil, Russia, India and China — increased 11% (up 14%, adjusting for currency). Co issues upside guidance for FY13, sees EPS of at least $16.70, excluding non-recurring items, vs. $16.63 Capital IQ Consensus.
