International Business Machines Corp (IBM) released its first quarter results on Tuesday, April 20, 2021. The company reported net earnings of $1.06 per share for the first quarter ending March 31, 2021. Earnings for this past quarter declined 19 percent compared to the same period a year ago.
The company was incorporated in 1911 and is headquartered in Armonk, New York. International Business Machines Corporation provides integrated solutions and services worldwide. Its Cloud & Cognitive Software segment offers software for vertical and domain-specific solutions in health, financial services, supply chain, and asset management, weather, and security software and services application areas; and customer information control system and storage, and analytics and integration software solutions to support client mission critical on-premise workloads in banking, airline, and retail industries.
International Business Machines' revenue decreased 4 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins increased to 56.71% for the first quarter compared to the same period in the previous year, and operating margins increased to 10.88% over the same period. Net earnings for past trailing twelve months were $5.2 billion, down 41% from the prior year.
Moving on to the balance sheet, International Business Machines’ cash levels dropped -6% for the third quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, decreased 4.25% this past year. The current ratio for International Business Machines now stands at 0.87. The company increased shares outstanding by 0.62%.
Shares of IBM are currently trading around $138.16. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of 23.09 and price to book ratio of 5.82.