IBM misses revenue estimates
International Business Machines Corp`s
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Armonk, New York-based IBM has in recent years shifted focus to pockets of growth across its business — areas such as cloud, cybersecurity and data analytics — to counter a slowdown in its hardware and software businesses.
Revenue from these initiatives, which IBM calls "strategic imperatives," rose 5 percent in the second quarter ended June 30. But the growth was slower than the double-digit percentage increases that the businesses had posted in the past several quarters, which could add to concerns about the pace of IBM`s turnaround.
However, revenue from "strategic imperatives" rose 11 percent to $34.1 billion over the past 12 months, the company said.
Revenue in IBM`s technology services and cloud platforms business — its largest — fell 5.1 percent to $8.41 billion. Analysts on average had expected $8.58 billion, according to financial data and analytics firm FactSet.
Total revenue dipped 4.7 percent to $19.29 billion, marking the steepest fall in five quarters. IBM has not posted growth in annual revenue since 2011.
Analysts on average had expected revenue of $19.46 billion, according to Thomson Reuters I/B/E/S.
IBM`s net income fell to $2.33 billion, or $2.48 per share in the second quarter ended June 30, from $2.50 billion, or $2.61 per share, a year earlier.
Excluding one-time items, IBM earned $2.79 per share, according to Thomson Reuters I/B/E/S, beating analysts` estimates of $2.74.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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