IBM Q3 Revenue Slides: Full-Year Profit Forecast Cut
IBM posted a 13.9 per cent year-on-year decline in revenue, which totalled $US19.28 billion (around $26.53 billion), for the quarter – as reported by Reuters, this was below analysts’ average forecast of US$19.62 billion.
Third quarter net income from continuing operations was US$3 billion, down from US$3.5 billion year-on-year, a decrease of 14 per cent.
IBM stated it expects earnings per share of US$14.75 to US$15.75 for the full-year, down from its previous guidance of US$15.75 to US$16.50.
IBM’s hardware segment was hit hard, recording revenue of $US1.49 billion, down 38.7 per cent year-on-year, while its software segment was down 10 per cent on the corresponding quarter, posting revenue of US$5.14 billion.
IBM continues to embark on the transition of its business, focusing on cloud, analytics and engagement, reporting that its “strategic imperatives” business posted a 17 per cent increase year-on-year (up 27 per cent adjusting for currency and its divested System x business), with total cloud revenues (public, private and hybrid) increasing more than 45 per cent (more than 65 per cent adjusting for currency and the divested System x business).
“In the third quarter we again made progress in the transformation of our business to higher value, with strong growth in our strategic imperatives and expanded operating margins,” Ginni Rometty, IBM chairman, president and chief executive officer, commented.
“We are continuing to make significant investments to build platforms around analytics, cloud, mobility and security that lay the foundation for a new era of cognitive business – where we see long-term value for our clients and shareholders.”