January 30, 2025 06:46 GMT
TECHNOLOGY: IBM Q4 Results
TECHNOLOGY
IBM A3[N]/A-/A-
Mild EBITDA beat with strong FCF and ahead-of-consensus guidance make for positive results. EPS beat pushed equity +9% post-market.
- Q4 cFX revs +2% (vs. +1.5% cons) w/ SW +11% (in line) but consulting -1% (vs. -0.3% cons) and infra -6% (vs. -9.7% cons).
- Q4 CFO USD 4.3bn from USD 4.2bn YoY. FCF USD 6.2bn from USD 6.1bn YoY (+9.5% vs. cons).
- Q4 EBITDA USD 5.6bn from USD 5.5bn YoY (+1.4% vs. cons).
- Debt of USD 55bn from USD 56.6bn at FY23 with cash of USD 14.8bn from USD 13.5bn
- EBITDA leverage 0.3x lower to 2.5x (total debt less cash), 1.7x (non-financing less cash). Our calc.
- FY25 cFX revs seen at least +5% (vs. +4.7% cons) with FCF of USD 13.5bn (vs. USD 13.2 cons).
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