IBM results Q3 2020 | DE24 News

IBM results Q3 2020 | DE24 News
IBM results Q3 2020 | DE24 News
IBM shares fell slightly in extended trading Monday after the company posted third-quarter earnings in line with analysts’ expectations.

This is how the company did it:

  • Merits: Adjusted for $ 2.58 per share versus $ 2.58 per share as analysts expected, Refinitiv said.
  • Revenue: According to Refinitiv, $ 17.56 billion versus $ 17.54 billion as analysts expected.

Sales were down 2.5%, according to a statement, declining for the third straight quarter on an annualized basis. The pattern of declining revenue under new CEO Arvind Krishna was common during the tenure of his predecessor Ginni Rometty. The coronavirus pandemic has challenged IBM, among other things, due to exposure to industries such as retail and transportation that were disrupted by the pandemic.

Krishna announced a major change on October 8, saying that the managed infrastructure services portion of the IBM Global Technology Services unit would become a separate public company. At the time, IBM announced preliminary results, forecasting adjusted earnings per share of $ 2.58 on revenue of $ 17.6 billion. During a conference call with analysts on the day of the announcement, Krishna said IBM expects “medium-term sustainable sales growth in the mid-single-digit range”.

In the third quarter, Global Technology Services, IBM’s largest, contributed $ 6.46 billion to revenue. That’s 4% less than last year and more than the FactSet consensus estimate of $ 6.25 billion.

Cloud and cognitive software, which includes Red Hat, had sales of $ 5.55 billion, up 7% and more than the FactSet consensus of $ 5.48 billion.

Global Business Services revenue was $ 3.97 billion, down 5% and more than the consensus of $ 3.90 billion. System revenue was $ 1.26 billion, 15% below the consensus of $ 1.55 billion.

The company’s free cash flow of $ 1.10 billion was below the FactSet consensus of $ 2.26 billion and was the lowest since the first quarter of 2001, according to FactSet.

IBM issued its forecast for the full year in April. The company didn’t release any new guidance in Monday’s income statement.

In the third quarter, IBM announced the acquisition of WDG Automation, a Brazilian software company.

IBM stock has fallen 6% since the beginning of 2020. The S&P 500 index is up about 6% over the same period.

Executives will discuss the results with analysts on a conference call starting at 5:00 p.m. Eastern time.

This is the latest news. Please try again.

SEE: Full interview with IBM CEO Arvind Krishna and Executive Chair Ginni Rometty

These were the details of the news IBM results Q3 2020 | DE24 News for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT FBI director warns that Chinese hackers are preparing to ‘wreak havoc’ on US critical infrastructure