BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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IBM Q2 2024 Results: Revenue Growth & Stock Up 2.95%
IBM (NYSE: IBM) announced its second-quarter 2024 earnings results, revealing significant growth in revenue and free cash flow. The company's performance exceeded expectations, driven by strong demand for its enterprise AI technology and services. In reaction to these results, IBM's stock price rose by 2.95% in after-market trading.
Key Highlights:
Financial Performance
- Revenue: $15.8 billion, up 2% year-over-year (YoY), or 4% at constant currency.
- Gross Profit Margin: GAAP: 56.8%, up 180 basis points; Operating (Non-GAAP): 57.8%, up 190 basis points.
- Pre-Tax Income Margin: GAAP: 14.1%, up 110 basis points; Operating (Non-GAAP): 17.7%, up 220 basis points.
- Net Income: $1.8 billion, up 16% YoY.
- Diluted Earnings Per Share (EPS): GAAP: $1.96, up 14% YoY; Non-GAAP: $2.43, up 11% YoY.
- Cash Flow: Year-to-date net cash from operating activities at $6.2 billion, with free cash flow of $4.5 billion, up $1.1 billion YoY.
Segment Performance
-
Software Revenue: $6.7 billion, up 7.1% YoY, or 8.4% at constant currency.
- Hybrid Platform & Solutions: Up 5% YoY, Red Hat up 7%, Automation up 15%, Data & AI down 3%, Security up 2%.
- Transaction Processing: Up 11% YoY.
-
Consulting Revenue: $5.2 billion, down 0.9% YoY, or up 1.8% at constant currency.
- Business Transformation: Up 3% YoY.
- Technology Consulting: Down 3% YoY.
- Application Operations: Down 4% YoY.
-
Infrastructure Revenue: $3.6 billion, up 0.7% YoY, or 2.7% at constant currency.
- Hybrid Infrastructure: Up 4% YoY, IBM Z up 6%, Distributed Infrastructure up 3%.
- Infrastructure Support: Down 5% YoY.
-
Financing Revenue: $0.2 billion, down 8.3% YoY.
Cash Flow and Balance Sheet
- Net Cash from Operating Activities: $2.1 billion for the second quarter, down $0.6 billion YoY.
- Free Cash Flow: $2.6 billion for the second quarter, up $0.5 billion YoY.
- Dividends: Returned $1.5 billion to shareholders in the second quarter.
- Cash and Marketable Securities: $16.0 billion at the end of the second quarter, up $2.5 billion from year-end 2023.
- Debt: Totaled $56.5 billion, flat year to date.
Full-Year 2024 Expectations
- Revenue Growth: Expected to align with the mid-single-digit growth model, with a 1-2% headwind from currency exchange rates.
- Free Cash Flow: Revised upward to more than $12 billion.
Leadership Insights
Arvind Krishna, IBM Chairman and CEO, highlighted the company's strong performance and growth in generative AI business since the launch of watsonx. James Kavanaugh, IBM CFO, emphasized the positive impact of business fundamentals, operating leverage, product mix, and productivity initiatives on profit and free cash flow.
Conclusion
IBM's robust second-quarter results underscore its solid position in the enterprise AI market and its commitment to innovation. The company’s strategic focus on software and AI technologies continues to drive its financial success and shareholder value. In response to these impressive results, IBM's stock price increased by 2.95% in after-market trading.
Source: IBM
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