IBM (finally) raises revenue after nearly 6 years

20 January 2018, 05:13 | Andres Norman

IBM -4.4% despite beating Q4 estimates, posting first revenue growth in nearly 6 years

Virginia

The last time IBM reported revenue growth from a prior year was in Q1 2012, which was Ginni Rometty's first as CEO.

IBM's total revenues declined for 22 quarters in a row, according to CNBC, but in the fourth quarter of 2017, that streak ended with the first quarter of year-over-year revenue growth in years.

The corporate-technology giant is remaking itself and investing heavily in new businesses like cloud computing, data analytics and artificial intelligence.

"2018 will be all about reinforcing IBM's leadership position in key high-value segments of the IT industry, including cloud, AI, security and blockchain." said Kavanaugh.

Revenues for the quarter (GAAP) were $22.54 billion, up 4% from the same time past year.

Revenue from IBM's cloud business jumped 30 percent in the latest quarter. IBM's as-a-service run rate for the year rose to $10.3 billion from $8.6 billion at the end of 2016.

Revenue was helped by the weakness of the dollar, since most of IBM's sales are outside the United States.

X Though Big Blue's revenue and earnings beat estimates, its gross margin and operating margin were below views. In the same quarter a year ago, the company reported $21.77 billion in revenue.

But it was revenues that took the most attention as IBM posted sales of $5.4bn (£3.9bn), up from $5.3bn (£3.8bn) a year earlier. These projects represented 46 percent of the company's full-year revenue in 2017.

NIA seizes over Rs80 cr of demonetised currency from Kanpur resident
According to NIA official, the currency may belong to four to five individuals or the leading detergent maker. Earlier, the NIA had recovered Rs 36.34 crore in demonetised currency in Delhi in November past year .

Governor Cooper urges Trump Administration to exempt NC from offshore drilling plan
In addition to Democrats, many Republicans have also decried the change by the Trump administration and the Florida exemption. Democrats from coastal states accuse Zinke and Trump of punishing states with Democratic leaders while rewarding Republicans.

Tarrant County reports its first 3 flu deaths
Influenza claimed the lives of two people in Northeast Ohio, according to the Cuyahoga County Board of Health. Randy Bergen, a pediatrician who is leading Kaiser Permanente-Northern California's anti-flu effort.

Several analysts pointed to the traditionally cyclical nature of mainframe revenues, which tend to surge for 2-4 quarters after the launch of a new launch before falling off.

"Thus quarter was another important step in the right direction with 2018 a major prove me year for IBM to show the turnaround story is viable, which we believe it is, albeit at a snail-like pace", Ives wrote.

UBS analyst Steve Milunovich reacted to the IBM earnings report by saying he was feeling worse near term but "somewhat better long term". Excluding the currency gain, the company's sales rose 1 percent.

In the fourth quarter, IBM acquired consulting agency Vivant Digital, settled a patent lawsuit with Priceline and said Daimler AG, JPMorgan Chase and Samsung are collaborating with the company on quantum computing technology.

The strategic imperatives will continue to grow "as we embed cognitive and cloud in more of what we offer", Schroeter said.

The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in a one-time charge of $5.5 billion in the fourth quarter. That bill also included "the revaluation of deferred tax assets and liabilities", we're told.

Adjusted earnings do not include a $5.5 billion non-cash charge related to the new US tax law.

During a conference call, IBM said that it is expecting its earnings per share to be a minimum of $13.80 during 2018, excluding special items. The company will have an annual effective tax rate of 16 percent, plus or minus 2%, inclusive of the tax reform, Kavanaugh said.



Other News

Trending Now

Kylie Jenner Receives a Very Special BABY GEAR Delivery at Her Home!!!
Another person joked: "Congrats and!" While no official word has been given on the baby news, there have been plenty of hints. But he seemed pleased when a photographer suggested they name the baby after his beloved late mother, Donda.

(MRK) Stock Ownership And Insider News
Finally, Pillar Pacific Capital Management LLC grew its position in shares of Merck & Co., Inc.by 4.9% during the first quarter. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets.

Anthony Joshua laughs off "glass chin" statement by Joseph Parker
He last fought in September 2017, out-pointing Britain's Hughie Fury to retain his WBO heavyweight title. He told a press conference: "It's an exciting time to be a heavyweight.

A comprehensive analysis of the Rockets and Clippers nearly scrapping
Rockets: Harden (hamstring strain) is on track to return later this week. Someone opened door, saw him standing there - and shut it on him.

Oops! Hawaii Officials Accidently Send Warning Of Incoming Ballistic Missile
She awakened her 16-year-old daughter with the news. "I looked out our patio and I could see down below", she said. David Ige , the governor of Hawaii, told CNN , said: 'It was a mistake made at the change over of a shift.

Transgender document leaker Chelsea Manning to run for US Senate
Cardin's office and Manning did not immediately respond to requests for comment. Maryland is considered a safely Democratic state for this year's Senate race.

Arsenal hold Chelsea to goalless draw in Carabao Cup semifinals
Wilshere went down after blocking a cross from Victor Moses and tried to shake the injury off in the next couple of minutes. The two London sides played out a thrilling 2-2 draw when they met in the Premier League at The Emirates last week.

Louisiana teacher handcuffed after speaking out at school board meeting
It remains unclear if the marshal was acting under the orders of the board members in attendance, or by his own accord. Hargrave's wishes and refrain from any additional comments at this time, as the case is ongoing.

Govt plans to extend pub hours for royal wedding
They also touched on their upcoming wedding at St. Before they left, Meghan added: "I must tune in". But Meghan Markle didn't start life as a royal.

'Racist' H&M hoodie ad Pulled from online after online backlash
This is not the first time that a major company has been skewered for using racist or insensitive advertising. The Roots' Questlove also took to social media to speak out against the offending photo.