International Business Machines Corporation Announces Unaudited Consolidated Earnings Results for Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the Year 2016
January 19, 2016 at 04:13 pm
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International Business Machines Corporation announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2015. For the quarter, the company reported total revenue of $22,059 million, income from continuing operations before income taxes of $4,460 million, income from continuing operations of $4,460 million or $4.59 per diluted share, net income of $4,463 million or $4.59 per diluted share, net cash from operating activities of $5,278 million compared to the total revenue of $24,113 million, income from continuing operations before income taxes of $7,094 million, income from continuing operations of $5,515 million or $5.54 per diluted share, net income of $5,484 million or $5.51 per diluted share, net cash from operating activities of $6,059 million for the same quarter a year ago. Capital expenditures, net were $1,016 million compared to $976 million a year ago. Free cash flow was $6,072 million compared to $6,588 million a year ago. For the quarter, on non-GAAP basis, the company reported pre-tax income from continuing operations of $5,516 million, income from continuing operations of $4,707 million or $4.84 per diluted share compared to the pre-tax income from continuing operations of $7,398 million, income from continuing operations of $5,785 million or $5.81 per diluted share for the same quarter a year ago.
For the year, the company reported total revenue of $81,741 million, income from continuing operations before income taxes of $15,945 million, income from continuing operations of $13,364 million or $13.60 per diluted share, net income of $13,190 million or $13.42 per diluted share, net cash from operating activities of $17,008 million compared to the total revenue of $92,793 million, income from continuing operations before income taxes of $19,986 million, income from continuing operations of $15,751 million or $15.59 per diluted share, net income of $12,022 million or $11.90 per diluted share, net cash from operating activities of $16,868 million for the previous year. Capital expenditures, net were $3,780 million compared to $3,779 million a year ago. Free cash flow was $13,075 million compared to $12,372 million a year ago. For the year, on non-GAAP basis, the company reported pre-tax income from continuing operations of $17,697 million, income from continuing operations of $14,659 million or $14.92 per diluted share compared to the pre-tax income from continuing operations of $21,142 million, income from continuing operations of $16,702 million or $16.53 per diluted share for the same period a year ago.
For the year 2016, the company expects currency to impact pretax profit growth in 2016 by about $1.3 billion with nearly 3/4 of that coming from a year-to-year reduction in cash flow hedging gains. The company expects operating EPS of at least $13.50. This reflects an impact from currency of over $1 of EPS, which is about a 7.5-point impact to the growth rate. Free cash flow will follow profit performance, and the company continue to see free cash flow realization in the 90s.
International Business Machines Corporation (IBM) is one of the world's leading computer services companies. Net sales break down by activity as follows:
- cognitive solutions and transaction processing software development (41.4%);
- IT services (31.6%): consulting (management of logistic chains, financial performance, CRM, human resources, etc.), application management, systems integration, cloud computing, hosting, technical support services, etc.;
- sale of IT infrastructure (25.3%): hybrid IT infrastructure solutions, microcomputers, servers, peripheral devices, networks, data storage equipment, etc.;
- financing of computer equipment (1%);
- other (0.7%).
Net sales are distributed geographically as follows: the United States (41.5%), Americas (9.8%), Europe/Middle East/Africa (29.7%), Japan (9%) and Asia/Pacific (10%).
International Business Machines Corporation Announces Unaudited Consolidated Earnings Results for Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the Year 2016