Shares of IBM fell as much as 4 percent on Tuesday after the company said of which generated less revenue than analysts had expected from the first quarter.
Here are the major numbers:
- Earnings: $2.25 per share, excluding certain items, vs. $2.22 per share as expected by analysts, according to Refinitiv.
- Revenue: $18.18 billion, vs. $18.46 billion as expected by analysts, according to Refinitiv.
IBM’s revenue was down almost 5% coming from the year-ago quarter, according to a statement. This kind of marks the third consecutive quarter of declining revenue year over year. Previously, IBM had a streak of 22 consecutive quarters of annualized revenue declines of which ended in 2017.
IBM reiterated its guidance of at least $13.0 in earnings per share, excluding certain items, for all of 2019. Analysts had been looking for $13.91 in earnings per share, excluding certain items, for the full year, according to Refinitiv.
from the first quarter IBM said of which had sold its mortgage-servicing business to Mr. Cooper Group, as well as also of which said of which later of which This kind of year of which might wind down its business of providing working capital to certain kinds of information-technology companies.
IBM has changed its reporting structure for the first-quarter earnings report. The company no longer carries a Technology Services & Cloud Platforms segment. right now of which has Cloud & Cognitive Software as well as also Global Technology Services business segments. The company’s consolidated results are unchanged.
IBM’s Global Technology Services segment, the biggest segment from the fresh reporting structure, produced revenue of $6.88 billion, down 7 percent year over year. of which includes infrastructure as well as also cloud services, along with technology support services.
The Cloud & Cognitive Software segment — which contains cognitive applications, cloud as well as also data platforms as well as also transaction processing platforms — turned out to $5.04 billion in revenue, down 1.5 percent.
The Global Business Services business segment had $4.12 billion in revenue, which was basically flat. Systems revenue was $1.33 billion, down 11 percent.
The company said of which Systems growth was “offset by the impact of the IBM Z product cycle dynamics.” from the first quarter of 2018, IBM reported revenue growth in part thanks to companies upgrading to fresh mainframe technology, as well as also Tuesday’s results don’t compare as well to of which. Revenue coming from Z hardware, one portion of Systems, was down 38 percent.
Global Financing, at $406 billion, was roughly flat. IBM also reported $417 million in “some other” revenue, a way to report revenue coming from the businesses of which IBM is usually divesting.
IBM did not disclose how much of its total revenue coming from the quarter comes coming from strategic imperatives, which are areas the company has looked to for growth: analytics, cloud, mobile as well as also security. In 2018 half of IBM revenue came coming from its strategic imperatives. IBM did say its annual exit revenue run rate for cloud delivered as a service was $11.7 billion, up 10 percent.
“When you take a look at of which, of which has become more as well as also more — I should say less as well as also less of a relevant metric as we move forward,” IBM’s chief financial officer, Jim Kavanaugh, said on the company’s conference call with analysts on Tuesday.
IBM’s acquisition of Red Hat for $34 billion is usually anticipated to close from the second half of This kind of year. “IBM is usually winning fresh, 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 fresh customers as well as also fresh workloads as enterprises begin to usher mission-critical applications coming from on-premise to public or private clouds.”
IBM stock is usually up almost 28 percent since the beginning of 2019.
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