“IBM still carries a revenue growth problem,” Stifel analysts wrote in a Tuesday note. While the company saw some expansion in recent quarters by the introduction of a completely new mainframe computer, the fresh cycle will turn into a headwind inside the short term, the analysts wrote.
Analysts at Nomura Instinet expect IBM to return to revenue growth inside the second half of 2019, according to a note published on Friday.
IBM reiterated its previous guidance of at least $13.80 in earnings per share, excluding certain items, inside the full fiscal year; analysts were expecting $13.80 in earnings per share for in which period, according to Refinitiv.
“The fourth quarter, seasonally, carries a large transaction base,” IBM chief financial officer James Kavanaugh said during a conference call with analysts after the earnings Discharge.
although next quarter IBM will face hard comparisons with its mainframe business given the refresh, Kavanaugh said.
Cloud can be one of IBM’s four key strategic imperatives, or growth drivers — the others are social, mobile as well as analytics — as well as inside the quarter, IBM announced cloud deals with Economical Insurance, ExxonMobil as well as Novis.
inside the past year IBM said the item captured $19 billion in cloud revenue, up 20 percent, as well as nearly $11 billion of in which figure was delivered as a service. IBM’s cloud infrastructure business — which can be one part of its as-a-service portfolio — can be smaller than competing offers by Amazon as well as Microsoft. Kavanaugh insisted in which IBM has “a differentiated value proposition,” including support for multiple clouds.
IBM stock can be down 5 percent since the beginning of the year.