IBM Revenue Declines Again
January 19 2017 - 4:59PM
Dow Jones News
By Ted Greenwald
International Business Machines Corp. notched its 19th
consecutive quarter of falling revenue, year on year, as it
struggles to offset declines in older businesses with sales in
younger ones that are growing at a rapid clip.
The Armonk, N.Y., computing giant said its fourth-quarter 2016
net profit edged up 0.9% as it posted $21.77 billion in revenue. It
reported diluted earnings per share of $4.72 a share, or $5.01
excluding certain items. Analysts had expected adjusted earnings
per share of $4.88 and revenue of $21.64 billion, according to a
survey by Thomson Reuters.
For the full year, the company earned $13.59 adjusted earnings,
in line with its forecast of at least $13.50, on $79.92 billion in
total revenue.
For the year ahead, the company said it expects to deliver
adjusted earnings per share of at least $13.80, above analysts'
expectations of $13.74.
The company's shares rose 2.8% to $171.40 in after-hours
trading.
Investors lifted IBM's share price 21% in 2016, more than double
the S&P 500's performance, in a sign of confidence that its
ship is turning toward renewed growth after a long wane. The
company's traditional businesses selling equipment and services for
on-premises corporate computing facilities have been shrinking as
customers turn to off-premises computing.
It has labored in recent years to shift from older operations
that it calls "core" to new revenue streams that it has dubbed
"strategic imperatives," such as analytics (including the Watson
cloud-based artificial intelligence service), cloud computing,
security, and mobile.
Write to Ted Greenwald at Ted.Greenwald@wsj.com
(END) Dow Jones Newswires
January 19, 2017 16:44 ET (21:44 GMT)
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