- IBM is 3.6% lower in aftermarket trade after its Q1 revenues marked the 20th straight quarter of Y/Y declines, and missed expectations significantly.
- Revenues fell 2.8% to $18.16B vs. an expected $18.39B, though EPS of $2.38 beat the Street.
- Strategic imperatives revenue was up 12% to $7.8B, the company notes, and it rose to 42% of revenue over the past 12 months ($33.6B).
- Revenue by segment: Cognitive Solutions, $4.06B (up 2.1%); Global Business Services, $4.01B (down 3%); Technology Services and Cloud Platforms, $8.22B (down 2.5%); Systems, $1.4B (down 16.7%); Global Financing, $405M (down 1.2%).
- The company reiterated its guidance for the full year, of operating (non-GAAP) EPS of at least $13.80 (vs. consensus for $13.78) -- adjusting for acquisition-related charges of $0.75/share and non-operating retirement-related items of $1.10/share.
- Net cash from operations was $4B for the quarter ($1.9B excluding Global Financing receivables). Free cash flow was $1.1B.
- Conference call to come at 5 p.m. ET.
- Press Release
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