INTERNATIONAL BUSINESS MACHINES CORPORATION COM STK USD0.20 (CDI) (IBM)

Sector:

IT Services

$ 118.95
   
  • Change Today:
    $0.00
  • 52 Week High: $169.5
  • 52 Week Low: $118.9
  • Currency: US Dollars
  • Shares Issued: 912.77m
  • Volume: 3,195
  • Market Cap: $108,574m

IBM warns of FX hit to earnings but pledges to pump $40bn into business

Date: Thursday 26 Feb 2015

LONDON (ShareCast) - US tech giant International Business Machines Corp, widely known as IBM, warned that the strength of the US dollar will reduce the company's revenue growth in the first quarter of 2015 by more than it had previously expected.
The warning comes a day after tech peer Hewlett Packard warned it will incur adverse currency effects due to the stronger US dollar, costing the group more than it expected to split into two.

In a filing to the US regulator, the Securities and Exchange Commission, IBM said that based on February 25, 2015 spot FX rates, the strong dollar is expected to impact revenue growth by over seven points for the first quarter of 2015, and over six points for the full year, much more than the impact they had previously factored in, based on January 16 spot rates.

That being said, the group said it is targeting $40bn in annual revenue from the cloud, big data, security and other growth areas by 2018. As such, it maintained its earnings forecast, which it expects to generate operating earnings per share between $15.75 and $16.50 a share this year.

IBM's $40bn target is the latest step by the technology giant towards shifting its core purpose toward emerging, high-margin businesses and away from its previous reliance to hardware and servers. The company said it will generate $40bn from areas which it calls "strategic imperatives", namely cloud, analytics, mobile, social and security software.

Those businesses generated $25bn in revenue for IBM last year, or about 27% of its total $93bn in sales. IBM added that its long-term plan is to hit "low single-digit" revenue growth and "high single-digit" growth in operating earnings per share.

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IBM Market Data

Currency US Dollars
Share Price $ 118.95
Change Today $ 0.00
% Change 0.00 %
52 Week High $169.5
52 Week Low $118.9
Volume 3,195
Shares Issued 912.77m
Market Cap $108,574m

IBM Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
38.85% below the market average38.85% below the market average38.85% below the market average38.85% below the market average38.85% below the market average
85.19% above the sector average85.19% above the sector average85.19% above the sector average85.19% above the sector average85.19% above the sector average
Price Trend
22.98% below the market average22.98% below the market average22.98% below the market average22.98% below the market average22.98% below the market average
23.08% above the sector average23.08% above the sector average23.08% above the sector average23.08% above the sector average23.08% above the sector average
Income
67.83% below the market average67.83% below the market average67.83% below the market average67.83% below the market average67.83% below the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
49.56% below the market average49.56% below the market average49.56% below the market average49.56% below the market average49.56% below the market average
69.41% above the sector average69.41% above the sector average69.41% above the sector average69.41% above the sector average69.41% above the sector average

What The Brokers Say

Strong Buy 4
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Neutral 10
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Strong Sell 1
Total 19
neutral
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IBM Dividends

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Ex-Div 08-Feb-24 09-Nov-23
Paid 09-Mar-24 09-Dec-23
Amount 166.00¢ 166.00¢

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