ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • 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
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Paisa Wasool: Mutual Funds-SIP Returns Calculator | Start from Rs 5k, get Rs 1.75 cr - SOLID MONEY FORMULA
  • WhatsApp New Feature: Soon! you can undo, recover WhatsApp deleted messages
  • LIC customers ALERT! Insurer launches campaign to revive lapsed policies - All you need to know
  • Wealth Guide: Income Tax - SMART TIPS! 5 tax-saving techniques for FY23 - Here is what expert suggests
  • Loss-making US company's share price zooms over 400% in one month - factors behind rally DECODED
Read in App
Business News » World News

IBM revenue beats estimates on strength in cloud, services businesses

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

IBM Corp reported a smaller-than-expected 3.5 percent drop in fourth-quarter revenue on Tuesday, as higher sales in its newer businesses such as cloud, software and services partially offset tapering sales of its latest mainframe computers and the pressures from a strong dollar.

However, the company, which is wrapping up its $34 billion cloud deal for Linux software maker Red Hat Inc , guided 2019 free cash flow below analysts` expectation, adding to investor concerns following the deal, the company`s biggest.

IBM said revenue slipped to $21.76 billion in the three months ended Dec. 31, but came in above analysts` average estimate of $21.71 billion, according to IBES data from Refinitiv.

The company reported net income of $1.95 billion, or $2.15 per share, compared with a loss of $1.05 billion, or $1.14 per share, a year earlier.

IBM recorded a charge of $1.9 billion related to the U.S. tax overhaul in the latest reported quarter. The company took a $5.5 billion charge related to the tax reform in the year-ago quarter.

Excluding special items, the company earned $4.87 per share. Analysts had expected $4.82. It was not immediately clear if the numbers were comparable.

IBM also forecast operating earnings for 2019 to be "at least" $13.90 per share, while analysts on average were expecting $13.79.

The company said it expects free cash flow of about $12 billion for the year, roughly in line with 2018. Analysts on average are expecting $12.67 billion for 2019.

Under Chief Executive Officer Ginni Rommetty, IBM has been refocusing toward faster-growing cloud and analytics services to lower its dependence on its traditional hardware products and reverse years of revenue declines

Underscoring that push, IBM in October agreed to buy Red Hat, a deal expected to close in the second half of the year.

The company is also shedding some of its legacy business as part of the shift. The company said in December it would sell some of its software products business to India`s HCL Technologies for $1.80 billion.

IBM said its cloud business, part of what it refers to as "strategic imperatives", grew 12 percent to $19.2 billion in 2018.

The company`s cognitive software business, which houses artificial intelligence platform Watson, analytics and cybersecurity services and is its second biggest, reported sales of $5.46 billion, compared with analysts` expectation of $5.25 billion.

IBM`s revenue of $4.32 billion from its global businesses services segment also beat estimates of $4.15 billion.

The Armonk, New York-based technology services giant, which makes over 60 percent of its revenue from outside the United States, had warned in the third quarter that a strong dollar would hit its revenue.

(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
Updated: Wed, Jan 23, 2019
03:02 am
Reuters
RELATED NEWS
Cabinet Decisions Today: From interest subvention on agriculture loans to ECLGS enhancement, top 4 decisions taken today Cabinet Decisions Today: From interest subvention on agriculture loans to ECLGS enhancement, top 4 decisions taken today
11% growth possible in next decade if India does this, says RBI Deputy Governor Michael Patra 11% growth possible in next decade if India does this, says RBI Deputy Governor Michael Patra
Money Guru: As India gears up for 75th Independence Day celebration, where should you invest for benefit in New India? Expert decodes Money Guru: As India gears up for 75th Independence Day celebration, where should you invest for benefit in New India? Expert decodes
UK economy contracts in 2nd quarter as recession fear grows UK economy contracts in 2nd quarter as recession fear grows
July retail inflation softens to 6.71% from 7.01% in June July retail inflation softens to 6.71% from 7.01% in June

LATEST NEWS

Breakthrough in Delhi-Dehradun Expressway project, announces Nitin Gadkari

Instagram, Facebook Latest Feature: Add Yours Sticker Reels - Learn how to use it | Step-by-step guide

Rupee vs Dollar: INR rises 44 paise to 79.30 against $ on account of foreign fund inflows

Paisa Wasool: Mutual Funds-SIP Returns Calculator | Start from Rs 5k, get Rs 1.75 cr - SOLID MONEY FORMULA FOR RETIREMENT

Aarti Drugs share price rises 11% amid buzz over anti-dumping duty on Ofloxacin imports from China

Bharat Gears share price zooms 17% after bonus announcement – check details

Samsung Galaxy Z Fold 4, Z Flip 4: Over 50K pre-bookings in 24 hours - Check price, specifications

Covid- 19 vaccination update: No FREE booster dose after THIS date - details

Syrma SGS Tech IPO subscribed 2.27 times on Day 3

Apple iPhone 14 Pro Max release date, price, specifications, color options - What to expect during September launch

  • 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
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV