World News – United States – IBM stock slips after further drop in revenues

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International Business Machines Corp. revenue continued to decline in the third quarter, according to an earnings report on Monday, and shares fell after hours as the company said it did not would not provide any perspectives

During a conference call, IBM
IBM,
-032%
CFO James Kavanaugh said the company would take a $ 2.3 billion fee in the fourth quarter « to simplify and streamline our business » as the company moves to split its IT outsourcing business « Given this uncertainty and in line with our focus for most of this year, we will not be giving guidance « 

« We are making strategic decisions, taking action and increasing our investments today to better position our business and accelerate our revenue growth on a sustainable basis, » said Managing Director Arvind Krishna

Analysts polled by FactSet forecast adjusted fourth-quarter earnings of $ 4 on revenue share of $ 20 81 billion

The company reported third quarter net income of $ 2 billion or $ 2.58 per share, up from $ 2.68 a share in the prior year period Profit from continuing operations was $ 1.89 per share, up from $ 1.89 per share $ 87 a share in the prior year period Revenue fell to $ 17 6 ​​billion from $ 18 03 billion in the year-ago quarter, continuing a long-term sales decline that resulted in lower revenue year over year in all of the last 33 quarters except four

IBM had announced preliminary revenue of $ 2.58 a share on revenue of $ 17.6 billion earlier this month, and analysts polled by FactSet had moved their estimates to an average of $ 2.58 a share on revenue of 17 $ 54 billion

Shares, which were down about 1% following the release of the earnings report, fell about 25% during the conference call These share moves followed a 03% drop in the regular session at $ 125 52

IBM recently focused on hybrid cloud technology, including with the fallout news, which was sent out as a way to focus more on this area IBM said the total revenue of the cloud, spread over some of its segments, grew by 19% to $ 6 billion

Global Technology Services, or GTS, posted $ 6.5 billion in revenue from $ 6.7 billion in the last quarter’s quarter and $ 625 billion from street consensus The company reported revenue from cloud and cognitive software – which includes its Red Hat unit – $ 5 6 billion compared to $ 5 28 billion a year ago, while analysts expected $ 5 48 billion

Global business services revenue was $ 4 billion, up from $ 412 billion a year ago, and street forecast of $ 3 9 billion Systems revenue was USD 1 3 billion, up from $ 1 48 billion a year ago and analysts’ expectations of $ 1 55 billion

For the year, IBM shares are down 6%, compared to a 1% decline by the Dow Jones Industrial Average
DJIA,
-143%,
and against a 6% increase in the S&P 500 index
SPX,
-163%
and a 28% gain by the Nasdaq Composite Index
COMP,
-165%

The number of confirmed cases of the coronavirus disease COVID-19 globally topped 40 million on Monday as new infections continued to rise in Europe and the US and experts warned the pandemic could s ‘worsen during the cold winter months

Wallace Witkowski came to The Associated Press’s MarketWatch in New York City, where he was a business reporter specializing in pharmaceutical companies. He previously wrote reports for trade publications spanning the drug and medical device industries until ‘in 1998 Based in San Francisco, he focused on US equities Follow Wally on Twitter at: @wmwitkowski

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World news – US – IBM stock slips after further drop in revenue, no prospects


SOURCE: https://www.w24news.com

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