IBM Reports Increase in Quarterly Income
IBM (NYSE: IBM) has registered 13 percent increase in its net income for the third quarter of 2010. Its net income for the quarter stood at $3.59 billion. On per share basis, the figure stands at $2.82 per share. The company had earned $3.21 billion during the same quarter of the last year. The consensus estimates were pegged at $2.75 per share in earnings.
- IBM reported 3 percent increase in its sales.
- IBM registered $24.3 billion in sales during the third quarter of the year.
IBM beat the street estimates of $24.1 billion. The company’s all the business units posted sales increase for the consecutive third quarter. Mark Loughridge, Chief Financial Officer of the company, said, “It’s very difficult to predict precisely when these deals will close, and eight days is not going to make any difference in the yield to this contract.” He also added that the company has a “strong deal list” for this quarter.
IBM Chief Executive Officer Sam Palmisano is looking to double the company’s operating earnings over the period of next five years. The company is also looking to derive half of its profits from software division.
IBM is an Armonk, New York-based information Technology Company.
Key Financial Stats
Valuation
- Price/Earnings(TTM)13.50
- Price/Cash Flow9.50
- Price/Sales (TTM)1.86
- Price/Book8.55
Financial Strength
- Quick Ratio (MRQ)1.00
- Current Ratio (MRQ)1.30
- LT Debt to Equity (MRQ)1.00
- Total Debt to Capital (MRQ)1.27
- Return on Equity66.50
Assets
- Asset Turnover0.90
- Asset per Employee.1M
- Inventory Turnover12.20
Per Share Data
- Earnings (TTM)10.57
- Current P/E Ratio1.30
- Cash Flow15.01
- Annual Dividend2.60
- Book Value16.70
- EBITDA19.80
Profitability
- Market Cap10.57
- Gross Margin (TTM)50.50
- Operating Margin (TTM)19.80
- Profit Margin (TTM) 14.50
Management Effectiveness
- Return on Equity (TTM)66.50%
- Return on Assets (TTM)13.60%
- Return on Investment (TTM)33.30%
