International Business Machines Corporation (IBM) – Earnings beat, but revenue drops short

International Business Machines Corporation (IBM) (Q2FY23)

Stock Performance: IBM’s stock price increased by 13.56% in the past 1-year. The stock has a 52-week high of $153.21 and its 52-week low is $115.55. The stock price showed an upward trend in the past 3- month period and gave 8.77% returns.

Q2FY23 Performance: Revenue of $15.47bn, down 0.4%, up 0.4% at constant currency. Software revenue is up 7%, up 8% at constant currency. Consulting revenue is up 4%, up 6% at constant currency. Infrastructure revenue is down 15%, down 14% at constant currency.

Guidance: The company expects constant currency revenue growth of 3% to 5%. At current foreign exchange rates, the currency is expected to be neutral to revenue growth. The company continues to expect about $10.5bn in free cash flow, up more than $1bn year to year.

Highlights

In Q2FY23, IBM’s gross profit margin improved to 54.9%, up by 160 basis points compared to the same quarter last year. This growth was due to several factors such as better pricing, a higher mix of products and services with higher margins, and effective cost management.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 35

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