IBM (IBM.US) stock plunges nearly 7.0% on Tuesday despite better than expected quarterly figures as the tech giant lowered its full-year cash forecasts due to the impact of a strong dollar and the loss of business in Russia.
-
Adjusted earnings surged 43% YoY to $2.31 per share, topping analysts’ expectations of $2.27 per share.
-
Revenues rose 9% to $15.54 billion, beating Wall Street projections of $15.16 billion partially thanks to rising demand for the company’s AI and hybrid cloud products.
-
“With our first half results, we continue to expect full-year revenue growth at the high end of our mid-single digit model.” said CEO Arvind Krishna
-
Consulting revenues rose 9.8% to $4.8 billion, up 9.8%, above the analyst consensus of $4.64 billion, while infrastructure revenues surged 19% to $4.2 billion, while analysts were looking for $3.76 billion
-
On the flip side financing revenues plunged nearly 30% to $100 million, while software revenues increased 6.4% to $6.2 billion, however missed the estimates of $6.3 billion
-
Adjusted gross margin stood at 54.5% in the quarter, compared to market estimates of 56.4%. Free cash flow was reported at $2.09 billion.
-
Company took a $900 million hit to second quarter revenues owing to the surging U.S. dollar, which was hovering near 20-year highs during much of the second quarter, a figure that was around $200 million higher than its prior forecast.
-
For the current fiscal year the company forecasts $10 billion in free cash flow, down from the previous forecast range of $10 billion to $10.5 billion. IBM expects “constant currency revenue growth at the high end of its mid-single digit model.”
IBM (IBM.US) stock launched today’s session with a massive bearish price gap, below the lower limit of the triangle formation and 200 SMA (red line), however sellers struggle to break below major support at $129.00. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
