This CEO is speaking the same corporate gibberish as Ginni Rometty did.
(2) And the same financially-engineered results. Operating income of $342MM(!) in the 1Q 2020 vs $1,919MM in 1Q 2019. actually lost money on a pre-tax basis in the 1Q.
(3) For the LTM, operating income has dropped to $8,318MM. Current annualized interest is $1,300. At a 21% tax rate, LTM pro forma net income would be $5,540MM, or about $6.20 per share. That is a far cry from $10-12!
(4) And $IBM’s LTM IP net income (@21% tax rate) is $0.60, and declining too. Combined, operations plus IP is below $7.00 per share, fully-taxed.
(5) One More Observation: The 2021E EPS estimate is $12.50. If $IBM’s business continues to decline at the same rate(-5% revenues, Y/Y)over the next year, their 2021E EPS will be closer to $2.50 than $12.50!
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