Categories Earnings, Technology

Earnings: IBM stock falls on Q1 revenue miss

International Business Machines (NYSE: IBM) reported an 8% fall in first-quarter earnings to $2.25 per share, as revenues declined 4.7% to $18.2 billion. Analysts were expecting the Armonk, New York-based firm to post earnings of $2.21 per share on revenue of $18.65 billion.

Shares of IBM fell 2.4% during aftermarket trading on Tuesday. The stock has gained about 26% since the beginning of this year.

CEO Ginni Rometty said, “In the first quarter, our cloud revenue growth accelerated, and we again grew in key, high-value areas in Cloud and Cognitive Software and in consulting.”

Revenue from Cloud & Cognitive Software was $5.0 billion in Q1, down 2% year-over-year. Adjusted for currency fluctuations, revenue was up 2%.

Earnings: IBM stock falls on Q1 revenue miss

For full-year 2019, IBM continues to expect adjusted operating earnings to be at least $13.90 per share and GAAP earnings of $12.45 per share or above. Cash flow is touted to be about $12 billion for the year.

 READ: LYFT AND SIX OTHER COMPANIES WENT PUBLIC IN MARCH. FULL LIST

IBM’s focus on hybrid cloud and its $34-billion acquisition of Red Hat (NYSE: RHT) are likely to become discussion points during the post-earnings conference call.  The Red Hat acquisition is expected to close in the second half of 2019.

Apart from the Red Hat acquisition, investors will be looking to see what the management thinks about its focus on cryptocurrency and blockchain technology.

 

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

Electronic Arts (EA) Q4 earnings drop and miss estimates; revenue down 3%

Video game company Electronic Arts, Inc. (NASDAQ: EA) reported lower earnings and revenues for the fourth quarter of 2021. Earnings also missed analysts' forecast. During the March quarter, net bookings

What lies in store for Tyson Foods (TSN) this year?

Shares of Tyson Foods Inc. (NYSE: TSN) were in green territory during afternoon hours on Tuesday. The stock has gained 32% over the past 12 months and 23% since the

Virgin Galactic (SPCE) fails to impress market amid looming uncertainty

Space tourism company Virgin Galactic Holdings, Inc. (NYSE: SPCE) ended the first quarter of 2021 without generating revenue and continued the losing streak even as uncertainty over its test flight

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top