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