IBM Earnings Cheat Sheet: Positive Earnings Streak

S&P 500 (NYSE:SPY) component International Business Machines Corporation (NYSE:IBM) reported its results for the third quarter. IBM creates integrated solutions that leverage information technology and a deep knowledge of business processes for clients.

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International Business Machines Earnings Cheat Sheet for the Third Quarter

Results: Net income for International Business Machines Corporation rose to $3.84 billion ($3.19 per share) vs. $3.59 billion ($2.82 per share) in the same quarter a year earlier. This marks a rise of 7% from the year earlier quarter.

Revenue: Rose 7.8% to $26.16 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: IBM reported adjusted net income of $3.28 per share. By that measure, the company beat the mean estimate of $3.22 per share. Analysts were expecting revenue of $26.27 billion.

Quoting Management: “In the third quarter, we drove revenue growth, margin expansion and increased earnings as a result of our innovation-based strategy and continued investment in growth initiatives,” said Samuel J. Palmisano, IBM chairman, president and chief executive officer. “Growth markets delivered outstanding revenue performance across software, hardware, and services and contributed to the company’s expanded margins. We also achieved strong results in Smarter Planet, business analytics and cloud.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 8.2% and in the first quarter, the figure rose 10.1%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 2 cents in the first quarter, and by 10 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 12.4% to $26.67 billion in the second quarter. The figure rose 7.7% in the first quarter from the year earlier and climbed 6.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $4.64 a share to $4.63 over the last seven days. Over the past three months, the average estimate for the fiscal year has climbed from $13.22 per to share to $13.31.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Hewlett-Packard Company (NYSE:HPQ), Microsoft Corporation (NASDAQ:MSFT), Cisco Systems, Inc. (NASDAQ:CSCO), Intel Corporation (NASDAQ:INTC), Dell Inc. (NASDAQ:DELL), Apple Inc. (NASDAQ:AAPL), EMC Corporation (NYSE:EMC), SAP AG (NYSE:SAP), and Sybase, Inc. (SY).

Stock Performance: Shares of IBM were down 2.1% from the previous close.

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(Source: Xignite Financials)