IBM’s revenue fell for the third straight quarter
IBM’s (IBM) stock was down over 4% on Wednesday, April 17, after it reported another disappointing set of numbers for the most recent quarter.
IBM’s revenue had sunk year-over-year or YoY each quarter for nearly six years up to the fourth quarter of 2017, when it recorded a positive gain for three straight quarters.
However, revenue fell 4.67% YoY to $18.18 billion in the first quarter of 2019, marking its third straight quarter of negative growth. Wall Street was expecting revenue of $18.46 billion.
The company posted net income of $1.59 billion, declining 5.2% YoY. Excluding certain one-time items, the company made $2.25 per share, above analysts’ estimates of $2.22 per share.
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IBM is expected to complete its acquisition of Red Hat in the second half of 2019
In recent years, the company has invested heavily in the cloud and upcoming fields like artificial intelligence and shifting away from slow-growth areas like equipment sales and IT services.
The company’s revenue from the cloud has represented 25% of its total revenue over the last 12 months, compared to 22% in the prior 12 months.
IBM’s acquisition of Red Hat will complete in the second half of the year. IBM hopes to boost its hybrid-cloud strategy after acquiring the open-source software company.
IBM’s stock is down 13.6% in the last 12 months and down 26.8% in the last five years.