Last quarter, IBM almost fooled the market when it "beat" but only thanks to using the lowest (until then) effective non-GAAP tax rate in recent history (excluding one charge-filled quarter when the rate was negative and thus N/M).
Fast forward one quarter when IBM has done it again: in the three months ended June 30, IBM reported GAAP EPS of $2.48, below the expected $2.75. Of course, when it comes to IBM it is all about non-GAAP results, which in Q1 were $2.97, "beating" estimates by 22c. How did IBM "beat" again, on a non-GAAP basis that is? By applying the lowest non-GAAP tax rate in company history, a paltry 9.2% (and just 4.5% GAAP). To wit:
IBM's reported GAAP and operating (non-GAAP) tax rates of 4.5 percent and 9.2 percent, respectively, include the effect of discrete tax benefits in the quarter, which contributed $0.18 to the company's earnings per share.
http://www.zerohedge.com/news/2017-07-18/ibm-reports-21st-consecutive-quarter-declining-sales-record-low-effective-tax-rate?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Cook the books back in play??????????????? LOL
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 
