International Business Machines Corp. reported quarterly revenue that missed analysts’ estimates, signaling Chief Executive Officer Arvind Krishna’s turnaround plan will take more time to pan out. Sales fell 6.5% to US$20.4 billion in the three months ended Dec. 31, the Armonk, New York-based company said Thursday in a statement. That was below the US$20.75 billion analysts had forecast, on average, and marked the 10th consecutive quarter with no year-over-year increase in revenue. The shares fell in extended trading.
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IBM on Thursday reported $20.4bn in revenue for its Q4 2020 earnings results, a decline of six per cent, and $73.6bn for the full year, down 4.6 per cent year-on-year.
That led to profits plummeting by 42 per cent for the year, even after it experienced cloud growth in certain areas. Financial analysts had anticipated something more like $20.67bn on average, leading to disappointment that manifested in an after-hours share price decline of about six per cent.
CEO Arvind Krishna, who took over in April 2020, tried to put a positive spin on things. We made progress in 2020 growing our hybrid cloud platform as the foundation for our clients digital transformations while dealing with the broader uncertainty of the macro environment, he said in a statement. The actions we are taking to focus on hybrid cloud and AI will take hold, giving us confidence we can achieve revenue growth in 2021.
3 months ago
ARMONK, N.Y.–(BUSINESS WIRE)–
IBM (NYSE: IBM) today announced fourth-quarter and full-year 2020 earnings results.
“We made progress in 2020 growing our hybrid cloud platform as the foundation for our clients’ digital transformations while dealing with the broader uncertainty of the macro environment,” said Arvind Krishna, IBM chairman and chief executive officer. “The actions we are taking to focus on hybrid cloud and AI will take hold, giving us confidence we can achieve revenue growth in 2021.”
Highlights
GAAP EPS from continuing operations of $1.41; Operating (non-GAAP) EPS of $2.07 EPS includes the impact of a pre-tax charge of more than $2.0 billion for structural actions in the fourth quarter
IBM Shares Tumble After Another Quarterly Revenue Decline Meanwhile, total cloud revenue increased 10 percent to $7.5 billion, the most revenue from cloud yet for IBM.
Bloomberg | Jan 22, 2021
Brody Ford (Bloomberg) International Business Machines Corp. shares fell the most in 10 months after the company reported a greater sales decline in the fourth quarter than analysts had expected, signaling Chief Executive Officer Arvind Krishna’s turnaround plan may take more time.
Sales fell 6.5% to $20.4 billion in the three months ended Dec. 31, the Armonk, New York-based company said Thursday in a statement. That was below the $20.75 billion analysts had forecast, on average, and marked the 10th consecutive quarter with no year-over-year increase in revenue.