IBM Q1 Profit Tops Estimates - Quick Facts

(RTTNews) - International Business Machines Corp. (IBM) reported first-quarter income from continuing operations of $2.4 billion or $2.44 per share, compared to $2.5 billion or $2.43 per share, prior year. First-quarter income from continuing operations was down 4.6 percent year-to-year, including the impact of $0.2 billion in pension-related pre-tax charges for IBM Spain in the first quarter of 2015, resulting from a court ruling in Spain. Operating earnings per share from continuing operations was $2.91, for the quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $2.82 for the quarter. Analysts' estimates typically exclude special items.

Total revenues from continuing operations was $19.6 billion; down 11.9 percent as reported, flat year-to-year adjusting for currency and divested businesses. Analysts expected revenue of $19.73 billion for the quarter.

Ginni Rometty, IBM chairman, president and CEO, said: "In the first quarter we had a strong start to the year. Our strategic imperatives growth rate accelerated, demonstrating the power of our offerings in these new opportunities and contributing to improved revenue performance. Our focus on higher value through portfolio transformation and investment in key areas of the business drove continued margin expansion."

IBM expects full-year 2015 GAAP earnings per share of $14.17 to $14.92, and operating earnings per share of $15.75 to $16.50. At this level of profit, IBM continues to expect free cash flow to be flat year-to-year. Analysts expect the company to report fiscal 2015 earnings per share of $15.89.