0 Grace A Posted July 18, 2019 Author Share Posted July 18, 2019 Quote Link to comment Share on other sites More sharing options...
0 Ignatius Bose Posted July 18, 2019 Share Posted July 18, 2019 The second-quarter earnings announcement by International Business Machines Corp. (NYSE:IBM) was a mixed bag although the tech giant beat Street estimates on a number of parameters. Beginning with the positives, IBM’s net income of $2.5bn in the second quarter at $2.81 a share came in higher than the $2.4bn at $2.61 a share a year earlier. Revenues from the cloud, cognitive and business services rose and were either in line or better than analysts forecast. The company’s acquisition of Red Hat, expected to close on 2nd August is likely to boost its cloud and services growth, going forward. The company also reiterated its full-year adjusted earnings guidance of $13.90 a share, in line with Street estimates. On the negatives, IBM recorded the fourth straight quarter with negative revenue growth. The tech giant’s total revenue fell to $19.16bn from $20bn the previous year, largely led by a more than 6.5% drop in the firm’s largest business segment, global technology services. Analysts were expecting IBM to report total revenue of $19.17bn. IBM has gained 25.86% year to date and the stock is poised to open with losses of more than a per cent on the NYSE on Thursday. Quote Link to comment Share on other sites More sharing options...
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