=IBM (IBM) reported earnings on Tue 17 Oct 2017 (a/h)

IBM beats by $0.02, beats on revs; reaffirms FY17 guidance

• Reports Q3 (Sep) earnings of $3.30 per share, excluding non-recurring items, $0.02 better thanthe Capital IQ Consensus of $3.28; revenues fell 0.4% year/year to $19.15 bln vs the $18.63 bln Capital IQ Consensus; Non-GAAP effective tax rate 14.7% vs. 12-18% annual guidance.
• Third-quarter cloud revenues increased 20% to $4.1 bln; revenues from analytics increased 5%. Revenues from mobile increased 7% and revenues from security increased 51% (up 49% adjusting for currency).
• Cognitive Solutions (includes solutions software and transaction processing software) -- revenues of $4.4 bln, up 4% (up 3% adjusting for currency), driven by solutions software, including security and analytics, and transaction processing software.
• Global Business Services (includes consulting, global process services and application management) -- revenues of $4.1 bln, down 2%. Strategic imperatives revenue grew 10% led by the cloud practice.
• Technology Services & Cloud Platforms (includes infrastructure services, technical support services and integration software) -- revenues of $8.5 bln, down 3% (down 4% adjusting for currency).
• Strategic imperatives revenue grew 12%, driven by hybrid cloud services, security and mobile. Systems (includes systems hardware and operating systems software) -- revenues of $1.7 bln, up 10%, driven by growth in z Systems and storage.
• Global Financing (includes financing and used equipment sales) -- revenues of $427 mln, up 4% (up 3% adjusting for currency).
• Co reaffirms guidance for FY17, sees EPS of at least $13.80, excluding non-recurring items, vs. $13.75 Capital IQ Consensus; FCF flat Y/Y; tax rate 12-18%