Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ The profits of IBM Q4 2020

The profits of IBM Q4 2020

SVP and IBM Research Director Arvin Krishna spoke on stage at the Wired Business Conference 2016 in New York on June 16, 2016.

Brian Ach Getty Images

Shares of IBM fell 6% lower in expanded trading on Wednesday after the company reported fourth-quarter revenue that did not meet analysts’ expectations.


7;s how IBM introduced itself:

  • Profit: $ 2.07 per share, adjusted against $ 1.79 per share, as expected by analysts, according to Refinitiv.
  • Income: $ 20.37 billion against $ 20.67 billion, as analysts expect, according to Refinitiv.

Revenue fell 6% year-on-year, the fourth consecutive quarter of declines, the statement said. The company is aiming to grow in cloud computing and artificial intelligence under new CEO Arvind Krishna, but revenue declines have put its predecessor, Gini Rometti, in the lead.

IBM’s cloud and cognitive software, which includes Red Hat, generated $ 6.84 billion in revenue, about 5 percent less than a year later. That’s lower than FactSet’s consensus estimate of $ 7.18 billion.

The Global Technology Services Unit generated revenue of $ 6.57 billion, down 6% from FactSet’s consensus of $ 6.92 billion.

Global Business Services, which includes consulting, contributed $ 4.17 billion, about 3% or more of the consensus of $ 4.08 billion.

Systems revenue of $ 2.50 billion from sales of mainframe computers and other hardware fell 18 percent to a consensus estimate of $ 2.26 billion. The company compares to a period when system revenues grew from a new mainframe.

The company has not issued official revenue guidelines, but said it expects revenue growth in 2021, along with $ 11 billion to $ 12 billion in free cash flow.

The company’s earnings per share fell 66 percent, the biggest drop in three years, in part due to a $ 2.04 billion pre-tax for structural actions during the quarter.

The fee is linked to a plan announced by IBM in October to separate its managed infrastructure services division, which offers website hosting and web-based software, into a separate public company by the end of 2021. The separation is the first major change for IBM since Krishna replaced Rometti as CEO in April. This division is currently part of Global Technology Services.

Also during the quarter, IBM said it had agreed to buy Nordcloud’s cloud consulting provider for an undisclosed amount.

With the exception of after-hours relocation, IBM’s inventories have grown by about 5% since the beginning of 2021, while the S&P 500 has grown by about 3% over the same period.

Leaders will discuss the results with analysts at a conference call beginning at 5:00 p.m. Eastern Time.

This is current news. Please check again for updates.

I WATCH: Gary Cohn joins IBM as vice president

The nominations are open for 2021. CNBC Disruptor 50, a list of private startups using breakthrough technology to become the next generation of large public companies. Sending until Friday, February 12, from 3:00 PM EST.

Source link