International Business Machines Corp. (NYSE:IBM) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4%.
International Business Machines Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 7.91% to $3.00 in the quarter versus EPS of $2.78 in the year-earlier quarter.
Revenue: Decreased 5.13% to $23.41 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: International Business Machines Corp. reported adjusted EPS income of $3.00 per share. By that measure, the company missed the mean analyst estimate of $3.05. It missed the average revenue estimate of $24.69 billion.
Quoting Management: “In the first quarter, we grew operating net income, earnings per share and expanded operating margins but we did not achieve all of our goals in the period. Despite a solid start and good client demand we did not close a number of software and mainframe transactions that have moved into the second quarter. The services business performed as expected with strong profit growth and significant new business in the quarter,” said Ginni Rometty, IBM chairman, president and chief executive officer.
Key Stats (on next page)…