IBM earnings Q4 2019

Earnings


IBM President and CEO Virginia Rometty delivers a speech to participants during the 4th edition of the Viva Technology show at Parc des Expositions Porte de Versailles in Paris on May 16, 2019.

Chesnot | Getty Images

IBM will release its fourth-quarter earnings statement after market close on Tuesday.

Here’s what the street expects:

  • Earnings: Excluding certain items, $4.69 per share as expected by analysts, according to Refinitiv.
  • Revenue: $21.64 billion as expected by analysts, according to Refinitiv.

The estimate implies that analysts see IBM’s revenue falling on an annualized basis for the sixth consecutive quarter, following the conclusion of an upgrade cycle for its z14 mainframe computer, even as the company has been shipping a new model, the z15, for more than one quarter.

In the fourth quarter IBM announced a “financial services-ready public cloud” offering that is expected to use the company’s existing cloud infrastructure, and it appointed Thomas Buberl, CEO of insurance company AXA, to its board.

Morgan Stanley analysts led by Katy Huberty cut their rating on IBM to equal-weight from overweight on Friday. “Even assuming modest Red Hat synergies, we now see long-term revenue growth at IBM as less likely without a more meaningful shift in the portfolio,” the analysts wrote. “We see IT budget growth deteriorating in 2020 with risk of further cuts to core IBM profit pools including on-premise infrastructure, consulting, and outsourcing.”

With respect to guidance, for 2020 analysts expect IBM to generate $13.29 in earnings per share, excluding certain items.

IBM shares are up 3% since the beginning of 2020.

This is breaking news. Please check back for updates.

WATCH: Trade should not be based on protectionism, IBM China CEO says



Source link

Products You May Like

Articles You May Like

As coronavirus spreads, what to watch out for when it comes to money
Wayfair (W) reports fourth-quarter 2019 earnings miss
It’s never too early to save for that emergency
Goldman sees zero earnings growth for US companies this year because of coronavirus
Home Depot and Best Buy could take off after earnings, charts suggest

Leave a Reply

Your email address will not be published.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