- Gains: $ 2.18 per share, adjusted, versus $ 2.07 per share as expected by analysts, according to Refinitiv.
- Returned: $ 18.12 billion, compared to $ 17.72 billion as expected by analysts, according to Refinitiv.
Adjusted earnings per share decreased 31% on an annualized basis during the quarter, and revenues decreased 5%, according to a statement. This was the second consecutive quarter of declining business revenues, as the coronavirus reached the company’s results.
The company’s net profit, which amounted to $ 1.36 billion, is down 46%.
IBM has not updated its forecast for the full year. In April, IBM withdrew its forecast for the entire year due to the pandemic.
IBM’s Global Technology Services category revenue totaled $ 6.32 billion, down nearly 8% year-on-year and above the FactSet consensus of $ 6.24 billion.
IBM’s Cloud and Cognitive Software segment, which includes Red Hat, generated $ 5.75 billion in revenue. That’s a 3% increase and barely above the FactSet consensus of $ 5.74 billion.
The Global Business Services unit posted revenue of $ 3.89 billion, down 7% and slightly above the consensus of $ 3.87 billion.
During the quarter, IBM announced cloud activity from Movius and the Prysmian Group, and told North Carolina News & Observer it was cutting a number of employees. And Arvind Krishna started his job as CEO of IBM on April 6th.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. EST.
Excluding the after-hours movement, IBM stock has dropped 5% so far this year.
These are the latest news. Please come back for updates.
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