Corrected: IBM quarterly revenue, full-year forecast disappoints
By Sayanti Chakraborty (Reuters) - (This version of the story corrects paragraph 1 to remove reference to FY revenue forecast, paragraph 2 to say company 'reiterated', not 'forecast' 2019 adj.
By Sayanti Chakraborty
(Reuters) - (This version of the story corrects paragraph 1 to remove reference to FY revenue forecast, paragraph 2 to say company 'reiterated', not 'forecast' 2019 adj. operating profit of 'at least' $13.90 per share)
International Business Machines Corp reported a bigger-than-expected drop in first-quarter revenue on Tuesday, hurt by tapering demand for its latest mainframe computers and a stronger dollar.
Shares of the technology giant fell 2 percent. The company reiterated 2019 adjusted operating profit of "at least" $13.90 per share. Analysts on average were expecting $13.91 per share.
Under Ginni Rometty's stewardship, the company has shed many of its traditional hardware businesses and beefed up the growth areas through deals such as its $34 billion deal for Red Hat Inc, by far the company's biggest acquisition.
IBM returned to annual revenue growth after seven years in the last quarter of 2018, triggering expectations that its strategy was taking roots.
Shares of the company have gained about 18 percent since reporting its fourth-quarter results in January.
However, in the reported quarter its cloud and cognitive segment, which includes analytics, cybersecurity and artificial intelligence, fell 1.5 percent to $5.04 billion, but beat FactSet estimates of $4.18 billion.
Revenue from its other main segments also fell and missed FactSet estimates.
"We see limited upside to revenues due to currency headwinds, tough comps from the mainframe cycle, and a potential pullforward of software revenues into Q4," Bernstein analyst Toni Sacconaghi said.
IBM's revenue slipped 4.7 percent to $18.18 billion in the first quarter ended March 31 and missed the average analyst estimate of $18.46 billion, according to IBES data from Refinitiv.
Its net income fell $1.59 billion, or $1.78 per share, compared with $1.68 billion, or $1.81 per share, a year earlier.
Excluding special items, the company earned $2.25 per share and beat analysts' expectation of $2.22 per share.
(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Arun Koyyur)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son