IBM Stock Slips On 19th Straight Revenue Decline; Cloud Unit Posts Solid Growth

Ryan McQueeney
Updated

International Business Machines Corp. IBM just released its fourth-quarter fiscal 2016 earnings results, posting earnings of $5.01 per share and revenue of $21.77 billion.  

IBM was down 2.29% to $162.99 in after-hours trading shortly after its earnings report was released.

Currently, IBM has a Zacks Rank #4 (Sell), but it is subject to change following the release of the company’s latest earnings report. Here are 5 key statistics from this just announced report below.

IBM:                                                          

Beat earnings estimates. The company posted earnings of $5.01 per share (excluding 29 cents from non-recurring items), surpassing our Zacks Consensus Estimate of $4.89 per share.

Beat revenue estimates. The company saw revenue figures of $21.770 billion, beating our estimate of $21.617 billion. Nevertheless, this was another year-over-year decline, marking its 19th straight quarter of revenue declines.

IBM reported Cloud revenue of $13.7 billion for full-year 2016, which represents year-over-year growth of 35%. Fourth-quarter cloud revenues were up 33%.

For FY17, IBM expected GAAP earnings of “at least” $11.95 per share, with non-GAAP earnings coming in at $13.80. The current Zacks Consensus Estimate sits at $13.63 per share.

“In 2016, we again made substantial capital investments, increased our R&D spending and acquired 15 companies … The acquisitions further strengthened our capabilities in analytics, security, cognitive and cloud,” said IBM CFO Martin Schroeter.

Here’s a graph that looks at IBM’s recent earnings performance:

International Business Machines Corp. Price, Consensus and EPS Surprise

International Business Machines Corp. Price, Consensus and EPS Surprise | International Business Machines Corp. Quote

IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing.

Check back later for our full analysis onIBM’s latest quarterly earnings report!

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