IT Software & Services: IBM Q3 13 results: mixed read-across for European IT stocks
IBM’s Q3 13 results, reported yesterday evening, provide a mixed read-across for European companies in Software (SAP, Software AG) but a positive one in IT Services (Capgemini, Atos): 1). Non-GAAP EPS were 1% above consensus (USD3.99) thanks to a significant tax benefit, and revenues were 4% below the consensus’ average essentially due to Hardware - particularly in China due to the political context - while Software was a bit below expectations and Global Services were in line; 2). Management expects growth to improve in Software and stay around Q3 levels in Global Services; 3). FY13 EPS guidance is reiterated at EUR16.90.
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