IBM first-quarter earnings disappoint

By

First slip from double-digit growth in years.

 

IBM first-quarter earnings disappoint

IBM Corp, the world's largest technology services company, reported an increase in first-quarter earnings, but missed estimates due to the depreciation of the Japanese yen.

International Business Machines Corp said on Thursday its quarterly non-GAAP income rose 3 percent to US$3.4 billion, or US$3.00, compared with analyst estimates of US$3.05 a share, according to Thomson Reuters I/B/E/S.

The deterioration in Yen currency since mid-January reduced EPS by US$0.07, a spokesman said.

Quarterly revenue dropped 5 percent to US$23.4 billion compared with estimates of US$24.6 billion. Revenues fell 3 percent adjusted for currency.

Some analysts were unhappy with the results and IBM shares lost 3.1 percent from a closing price of $207.15 in extended trading following results.

"It's disappointing results," said ISI group analyst Brian Marshall.

"Clearly the business model is somewhat over-optimised. It's the first quarter in many years they did not grow EPS double digits year-over-year."

He added investors were very focused on that double-digit earnings growth.

(Reporting by Nicola Leske.; Additional reporting by Jennifer Saba. Editing by Andre Grenon)

Got a news tip for our journalists? Share it with us anonymously here.
Tags:

Most Read Articles

Health signs $37m device-as-a-service deal

Health signs $37m device-as-a-service deal

NSW gov to house drones permanently at traffic hotspots

NSW gov to house drones permanently at traffic hotspots

Third of chip production could face copper supply disruptions by 2035

Third of chip production could face copper supply disruptions by 2035

Apple loses bid to dismiss US smartphone monopoly case

Apple loses bid to dismiss US smartphone monopoly case

Log In

  |  Forgot your password?