IBM stock was down 2.5 percent on Tuesday after the company disclosed earnings for the second quarter of the year, falling short of revenue estimates but beating earnings estimates.
- EPS: Excluding certain items, $2.97 in earnings per share vs. $2.74 in earnings per share as expected by analysts, according to Thomson Reuters.
- Revenue: $19.29 billion vs. $19.46 billion as expected by analysts, according to Thomson Reuters.
IBM reiterated its guidance of at least $13.80 in earnings per share for the full year of 2017, in line with its guidance from the first quarter. Analysts had expected guidance of $13.68 per share.
Revenue from IBM’s strategic imperatives of analytics, cloud, mobile, social and security was $8.8 billion, IBM said in a statement. Strategic imperatives now contribute 45 percent of IBM’s total revenue, up from 42.8 percent in the first quarter, IBM said. Cloud revenue, including cloud delivered as a service, for the quarter was $3.9 billion, up 15 percent from last year. Analytics revenue of $5.1 billion was up 4 percent.
IBM’s Technology Services and Cloud Platforms division came up with $8.4 billion in revenue, down 5.1 percent year over year. The Cognitive Solutions business produced $4.6 billion in revenue, down 2.5 percent.
IBM’s Global Business Services group did $4.1 billion in revenue, which was down 3.7 percent, while the Systems segment contributed $1.7 billion in revenue, down 10.4 percent.
Also in the quarter, CNBC reported that Facebook was looking to move WhatsApp off of IBM’s cloud and onto its own in-house data center infrastructure.
IBM stock has dropped more than 7 percent since the beginning of this year.
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Source: Tech CNBC
IBM revenue is down for the 21st quarter in a row