IBM stock slips after revenue shortfall

Earnings

IBM will release first-quarter earnings after market close on Tuesday.

Here are the numbers to watch:

  • Earnings: $2.22 per share as expected by analysts, excluding certain items, according to Refinitiv.
  • Revenue: $18.46 billion as expected by analysts, according to Refinitiv.

The estimate implies that analysts expect IBM’s revenue to be down 3.2% from the year-ago quarter. This would be the third consecutive quarter in which revenue declined from a year ago. Previously, IBM had a streak of 22 consecutive quarters of annualized revenue declines that ended in 2017.

In the first quarter IBM said it had sold its mortgage-servicing business to Mr. Cooper Group, and it said that later that this year it would wind down its business of providing working capital to certain kinds of information-technology companies.

IBM stock is up 27 percent since the beginning of 2019.

IBM’s acquisition of Red Hat for $34 billion is expected to close in the second half of this year. “IBM is winning new, even cloud-native, customers before RHT,” Nomura Instinet analysts led by Jeffrey Kvaal wrote in a note distributed to clients on April 9. “OpenShift [a Red Hat product] should help IBM win new customers and new workloads as enterprises begin to usher mission-critical applications from on-premise to public or private clouds.”

Executives will discuss the results with analysts at 5 p.m. Eastern time.

This is breaking news. Please check back for updates.

WATCH: IBM Ceo Ginni Rometty: Hybrid cloud is a trillion-dollar market, and we’ll be number one

Products You May Like

Articles You May Like

Cramer on semiconductors: ‘If you want to sell these stocks, sell them’
SpaceX is the No. 1 rocket company by revenue, with $2 billion last year, Jefferies estimates
Stocks making the biggest moves after hours: HP, Autodesk, Boeing and more
Emerging markets are bearing the brunt of the trade war. But they will fight back
Stocks making the biggest moves after hours: GM, Snap, Merck and more

Leave a Reply

Your email address will not be published. Required fields are marked *