Research Desk Line-up: International Business Machines Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 19, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Wipro Ltd (NYSE: WIT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=WIT, following the Company's disclosure of its financial results on October 17, 2017, for the second quarter of the fiscal year 2018. The software services exporter's earnings before tax (EBT) increased 6.2% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Information Technology Services industry. Pro-TD has currently selected International Business Machines Corporation (NYSE: IBM) for due-diligence and potential coverage as the Company announced on October 17, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on International Business Machines when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on WIT; also brushing on IBM. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended September 30, 2017, Wipro's gross revenue decreased 2.4% to INR134.23 billion ($2.06 billion) from INR137.66 billion in Q2 FY17.

During Q2 FY18, Wipro's gross profit decreased 0.7% to INR39.54 billion ($606 million) from INR39.85 billion in the same period of last year. For the reported quarter, the Company's gross margin increased 50 basis points to 29.4% of revenue from 28.9% of revenue in Q2 FY17.

During Q2 FY18, Wipro's selling and marketing expenses increased 2.6% to INR9.87 billion ($151 million) from INR9.61 billion in Q2 FY17. For the reported quarter, Wipro's G&A expenses decreased 17% to INR7.09 billion ($109 million) from INR8.55billion in Q2 FY17.

During Q2 FY18, Wipro's operating income increased 0.3% to INR23.04 billion ($353 million) from INR22.97 billion in Q2 FY17. For the reported quarter, the Company's operating margin increased 50 basis points to 17.1% of revenue from 16.6% of revenue in Q2 FY17.

During Q2 FY18, Wipro's EBT increased 6.2% to INR28.32 billion ($434 million) from INR26.65 billion in Q2 FY17. For the reported quarter, the Company's EBT margin increased 170 basis points to 21.0% of revenue from 19.3% of revenue in the same period of last year.

During Q2 FY18, Wipro's net income increased 6% to INR21.92 billion ($336 million) on a y-o-y basis from INR20.67 billion in Q2 FY17. For the reported quarter, the Company's diluted earnings per share (EPS) increased 6.1% to INR4.52 ($0.07) on a y-o-y basis from INR4.26 in Q2 FY17. The net income surpassed analysts' expectations of INR20.80 billion.

Segment Details

IT Services - During Q2 FY18, Wipro's IT Services segment's revenue increased 0.2% to INR131.69 billion ($2.02 billion) from INR131.37 billion in Q2 FY17. For the reported quarter, the segment's profit decreased 2.5% to INR22.78 billion from INR23.37 billion in Q2 FY17.

IT Products - During Q2 FY18, Wipro's IT Products segment's revenue decreased 61% to INR2.99 billion from INR7.67 billion in the same period of last year. For the reported quarter, the segment's profit was INR88 million compared to negative INR298 million in Q2 FY17.

Balance Sheet

As on September 30, 2017, Wipro's cash and cash equivalents decreased 2.4% to INR51.41 billion from INR52.71 billion on March 31, 2017.

During Q2 FY18, the Company's inventories decreased 11.7% to INR3.46 billion from INR3.92 billion in Q4 FY17. For the reported quarter, Wipro's trade receivables increased 5.3% to INR99.89 billion from INR94.85 billion in Q4 FY17.

For the reported quarter, the Company's investments increased 14% to INR333.06 billion from INR292.03 billion in Q4 FY17. During Q2 FY18, Wipro's long-term debt increased 58.8% to INR31.15 billion from INR19.61 billion in Q4 FY17.

During Q2 FY18, the Company's trade payables and accrued expenses increased 6.3% to INR69.64 billion from INR65.49 billion in Q4 FY17.

On July 20, 2017, Wipro's Board of Directors approved a proposal to repurchase equity shares of up to 343.75 million at a price of INR320 per equity share.

Outlook

For Q3 FY18, Wipro expects IT Services segment's revenue to be in the range of $2.01 billion - $2.05 billion.

Stock Performance

At the closing bell, on Wednesday, October 18, 2017, Wipro's stock slightly climbed 0.19%, ending the trading session at $5.38. A total volume of 1.82 million shares have exchanged hands, which was higher than the 3-month average volume of 1.45 million shares. The Company's stock price advanced 9.24% in the past six months and 7.71% in the previous twelve months. Moreover, the stock surged 11.16% since the start of the year. The stock is trading at a PE ratio of 19.93 and has a dividend yield of 0.37%. The stock currently has a market cap of $21.13 billion.

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