Bryan, Garnier & Co publishes a new Research Report on IT Software & Services

News published on April Friday 19, 2013
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IBM Q1 13 results below expectations: sales execution issues back on the table.

IBM’s Q1 13 results reported yesterday evening were below consensus expectations (non-GAAP EPS USD3.00 vs. consensus at USD3.05, for revenues 5% below the consensus average), but management reiterated FY13 EPS guidance (USD16.70). According to IBM, the Software and Mainframe businesses were particularly affected by sales execution problems, the timing of Easter this year and a 13% decline in the US Federal business. Conversely, IBM Global Services performed in line with expectations and a backlog up 5% at cc augurs well for that division for H2 13 with low-single digit revenue growth expected. Near-term, we view the read-across as negative for European Software companies (SAP, Software AG) while neutral for IT Services (Capgemini, Atos).

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