IBM Q1 2018 Earnings Report — International Business Machines Corporation Revenue & Financial Results | Market Cap Arena

International Business Machines CorporationIBM

Q1 2018 Earnings

Reported April 24, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q1 2018	Q4 2017	Q1 2017	QoQ Change	YoY Change
Revenue	$19.1B	$22.5B	$18.2B	-15.4%	5.0%
Op. Income	$1.7B	$4.7B	$1.9B	-62.9%	-8.8%
Gross Margin	43.2%	48.2%	43.8%	-4.9pp	-0.5pp
Net Margin	8.8%	-4.7%	9.6%	13.5pp	-0.8pp
EPS (Diluted)	$1.81	$-1.13	$1.85	260.2%	-2.2%
Free Cash Flow	$3.6B	$4.6B	$3.1B	-22.4%	17.2%

Revenue Flow

Item	Amount
REVENUE	$19.1B
Cost of Revenue	$10.8B
GROSS PROFIT	$8.2B
R&D Expenses	$1.4B
Selling & Marketing	$401M
General & Administrative	$4.9B
SG&A Expenses	$5.3B
Other Expenses	-$208M
Operating Expenses	$6.5B
Cost & Expenses	$17.3B
OPERATING INCOME	$1.7B
Interest Income	$71M
Interest Expense	$165M
Other Income/Expenses	-$591M
INCOME BEFORE TAX	$1.1B
Income Tax Expense	-$540M
Net Income from Continuing Ops	$1.7B
Net Income from Discontinued Ops	$4M
Other Adjustments	$0
NET INCOME	$1.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.7B
D&A	$1.1B
EBIT	$1.3B
EBITDA	$2.4B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$19.1B
Cost of Revenue	$10.8B
GROSS PROFIT	$8.2B
R&D Expenses	$1.4B
Selling & Marketing	$401M
General & Administrative	$4.9B
SG&A Expenses	$5.3B
Other Expenses	-$208M
Operating Expenses	$6.5B
Cost & Expenses	$17.3B
OPERATING INCOME	$1.7B
Interest Income	$71M
Interest Expense	$165M
Other Income/Expenses	-$591M
INCOME BEFORE TAX	$1.1B
Income Tax Expense	-$540M
Net Income from Continuing Ops	$1.7B
Net Income from Discontinued Ops	$4M
Other Adjustments	$0
NET INCOME	$1.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.7B
D&A	$1.1B
EBIT	$1.3B
EBITDA	$2.4B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.7B
Depreciation & Amortization	$1.1B
Stock-Based Compensation	$116M
Deferred Income Tax	$0
Other Non-Cash Items	$35M
Change in Working Capital	$1.7B
OPERATING CASH FLOW	$4.6B
Capital Expenditure	-$996M
Acquisitions (Net)	-$71M
Purchases of Investments	-$1.5B
Sales/Maturities of Investments	$810M
Other Investing Activities	-$112M
NET CASH FROM INVESTING	-$1.8B
Net Debt Issuance	-$713M
Common Stock Repurchased	-$830M
Common Dividends Paid	-$1.4B
Other Financing Activities	$16M
NET CASH FROM FINANCING	-$2.9B
FREE CASH FLOW	$3.6B
Net Change in Cash	$28M

Balance Sheet

Item	Amount
Cash & Equivalents	$11.9B
Short-Term Investments	$893M
Net Receivables	$29.2B
Inventory	$1.8B
Other Current Assets	$2.7B
TOTAL CURRENT ASSETS	$49.1B
PP&E (Net)	$11.3B
Goodwill	$36.7B
Intangible Assets	$3.5B
Long-Term Investments	$2.9B
Tax Assets	$5.1B
Other Non-Current Assets	$16.6B
TOTAL NON-CURRENT ASSETS	$76.2B
TOTAL ASSETS	$125.3B
Account Payables	$5.7B
Short-Term Debt	$6.0B
Deferred Revenue	$13.1B
Other Current Liabilities	$3.3B
TOTAL CURRENT LIABILITIES	$35.7B
Long-Term Debt	$40.4B
Deferred Revenue NC	$3.9B
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$27.0B
TOTAL NON-CURRENT LIABILITIES	$71.3B
TOTAL LIABILITIES	$107.0B
Common Stock	$54.7B
Additional Paid-In Capital	$0
Retained Earnings	$156.4B
Treasury Stock	-$164.3B
Accum. Other Comp. Income	-$28.6B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$18.2B
Minority Interest	$124M
TOTAL EQUITY	$18.3B
TOTAL LIABILITIES & EQUITY	$125.3B
Total Debt	$46.4B
Net Debt	$34.4B