When it comes to earnings quality, the best I can say for IBM: Eh!
And the good part about IBM , is that it comes right out and tells you, assuming you care about it.
Here’s what you need to know about its third quarter:
Revenue, up 3 percent.
EPS [earnings per share] growth, up 42 cents or 18 cents—beating by 7 cents. However, according to the company, only 7 cents of that came from “revenue growth at constant mix.” The other 35 cents came from cost cutting, a lower tax rate and share repurchases.