LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

IBM returns to growth, but shares drop after recent rally

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Fri, Jan 19, 2018
03:50 am
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

International Business Machines Corp`s revenue rose for the first time in 23 quarters and beat analysts` estimates as the company`s shift into its focus areas such as cloud computing and security services gains traction.

IBM`s shares tumbled about 4 percent in extended trading on Thursday. In October, the company had flagged a possible return to growth and since then its stock has gained about 16 percent, including rallying about 10 percent since the start of 2018.

"IBM hit their numbers, so I think the reason why shares are down is the shares have been up materially in the last 18 days ... so they`re giving a little bit of that up," Pivotal Research analyst Lou Miscioscia said.

IBM`s quarterly profit, excluding a charge related to the recent U.S. tax overhaul, just edged past analysts` estimates and the company did not detail the expected impact of the new tax rates on current year`s results.

"It`s really the uncertainty of how 2018 shapes out. The big portion of that is tax," said analyst David Holt of MacMillan Communications.

"Yes it`s going to be headwind but we really don`t know when and how they will be able to recognise those discrete items, and the second one would be the actual growth margin pull."

To counter a slowdown in its legacy hardware and software businesses, IBM has in recent years targeted high-margin "strategic imperatives" such as cloud computing, cybersecurity, mobile and data analytics that flow across its five business units.

That has helped its revenue decline slow down in recent quarters and finally turn a corner last quarter. Wall Street expects IBM`s revenue to grow in the current quarter and the next quarter as well, according to Thomson Reuters I/B/E/S.

"Well I think the expectations got ahead of themselves ... they (IBM) have not given 2018 guidance yet, they`re going to give that in the call, so were still waiting for more information," Miscioscia said.

IBM`s "Strategic imperatives" includes the contribution of cloud computing – where firms use a remote network of data centres instead of their own hardware to cut costs.

IBM`s cloud business grew 30 percent in the fourth quarter. Revenue from all "strategic imperatives" rose 17 percent.

Total revenue increased 3.6 percent to $22.54 billion, beating analysts` average estimate of $22.06 billion.

IBM swung to a loss of $1.05 billion from a year-ago profit of $4.50 billion, due to a $5.5 billion tax reform-related charge. Its adjusted profit of $5.18 per share was a penny above analysts estimates.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

7th Pay Commission latest news today: DA hike, DR benefit, arrears, ease in LTC — updates that central government employees just cannot miss

Sonu Sood to launch blood bank app

WBPSC Exam 2021: Date for West Bengal Public Service Commission Exam 2021 postponed: Check latest news here!

MTAR Technologies IPO News: Check allotment status finalisation, listing date and how to check share subscription

Heranba IPO Allotment Status: Finalised! Didn't get shares? Waiting for refund? Know this important date

Heranba Industries IPO allotment status finalised; Trading in equity shares will commence on March 5

PayPal plans to hire over 1K engineers in India

SBI account holder? Don't do this, or you will lose money; Bank issues WARNING - check 3 top tips

NEET 2021 exam date latest news: Candidates check this big update

Axar Patel was the best as he made batsmen play: Harbhajan

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved