IBM revenues slip as cloud sales falter
By Iain Gilbert
Date: Wednesday 17 Apr 2019
(Sharecast News) - Computer giant IBM saw revenues slip in the first quarter after sales faltered at its cloud computing division.
Big Blue reported a 5% year-on-year drop in revenues to $18.2bn, below expectations on the Street, as sales in its newly expanded cloud and cognitive software division fell 2% to $5bn.
Revenues were down 7% in IBM's technology business, which includes tech support, while at its business consulting unit they were flat year-on-year.
Net income fell from $1.68bn to $1.59bn, or $1.78 per share for the three months ended 31 March.
However, excluding special items, IBM, which returned to growth at the end of 2018 after six years of declining sales, saw earnings per share come in ahead of analyst expectations at $2.25 each
Looking forward, the company maintained its adjusted operating profit guidance of "at least" $13.90 per share - just shy of the $13.91 per share predicted by analysts.
As of 0900 BST, IBM shares had slid 2.51% in after-hours trading to $141.50 each.
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