{"id":48030,"date":"2017-10-18T05:40:11","date_gmt":"2017-10-18T05:40:11","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=48030"},"modified":"2017-10-18T05:40:11","modified_gmt":"2017-10-18T05:40:11","slug":"ibm-beats-revenue-estimates-hints-at-sales-growth","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/ibm-beats-revenue-estimates-hints-at-sales-growth.html","title":{"rendered":"IBM beats revenue estimates hints at sales growth"},"content":{"rendered":"<h2 style=\"text-align: justify\"><span style=\"font-size: 14pt\"><strong><span style=\"font-family: Arial, Helvetica, sans-serif\">IBM beats revenue estimates hints at sales growth<\/span><\/strong><\/span><\/h2>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">IBM beats revenue estimates hints at sales growth: Shares of the Dow component rose nearly 5.1 percent to $153.93 in extended trading on Tuesday.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">IBM has been focusing on cloud, cybersecurity and data analytics, or what the company calls its \u201cstrategic imperatives\u201d, to counter a slowdown in its legacy hardware and software businesses.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">Revenue from these businesses climbed 11 percent to $8.8 billion in the third quarter ended Sept. 30, accounting for about 46 percent of the company\u2019s total revenue.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">\u201cManagement is focused in the right areas, but still have some work and must demonstrate this growth is sustainable,\u201d said Josh Olson, an analyst at Edward Jones.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">Revenue from the cognitive solutions business, which includes the AI-powered supercomputer Watson, rose nearly 4 percent to $4.40 billion, after falling 2.5 percent in the previous quarter.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">Analysts on average expected revenue of $4.17 billion, according to financial data and analytics firm FactSet.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">IBM said it expected revenue to grow $2.8 billion to $2.9 billion in <\/span>fourth<span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\"> quarter from the third quarter.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">This implies fourth-quarter revenue in the range of $22 billion to $22.1 billion, a year-on-year growth of about 1.4 percent at the high end.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">A part of the rise in revenue is expected to come from the mainframe business, which got a boost from the launch of Z14.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">Revenue in mainframe business jumped 60 percent in the third quarter, Chief Financial Officer Martin Schroeter told Reuters, adding that the business gained from Z14, which began shipping in mid-September.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">\u201cThe progress around the mainframe contribution, signings growth\/visibility in consulting and positive trends in cloud likely <\/span>sets<span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\"> up for further momentum in Q4,\u201d said David Holt, an analyst with CFRA.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">IBM backed its forecast for 2017 adjusted earnings of at least $13.80 per share. Analysts on average are expecting earnings of $13.75 per share, according to Thomson Reuters I\/B\/E\/S.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">Total revenue fell 0.4 percent to $19.15 billion, but handily beat analysts\u2019 estimates of $18.60 billion.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">The company\u2019s net income fell to $2.73 billion, or $2.92 per share, in the third quarter, from $2.85 billion, or $2.98 per share, a year earlier.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 12pt\">Excluding one-time items, IBM earned $3.30 per share, beating analysts\u2019 estimates of $3.28.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-family: Arial, Helvetica, sans-serif;font-size: 8pt\">Source:http:\/\/www.reuters.com\/article\/us-ibm-results\/ibm-beats-revenue-estimates-hints-at-sales-growth-idUSKBN1CM2XJ<\/span><\/p>\n<div class=\"fb-background-color\">\n\t\t\t  <div \n\t\t\t  \tclass = \"fb-comments\" \n\t\t\t  \tdata-href = \"https:\/\/www.biphoo.com\/bipnews\/business\/ibm-beats-revenue-estimates-hints-at-sales-growth.html\"\n\t\t\t  \tdata-numposts = \"10\"\n\t\t\t  \tdata-lazy = \"true\"\n\t\t\t\tdata-colorscheme = \"light\"\n\t\t\t\tdata-order-by = \"social\"\n\t\t\t\tdata-mobile=true>\n\t\t\t  <\/div><\/div>\n\t\t  <style>\n\t\t    .fb-background-color {\n\t\t\t\tbackground: #ffffff !important;\n\t\t\t}\n\t\t\t.fb_iframe_widget_fluid_desktop iframe {\n\t\t\t    width: 630px !important;\n\t\t\t}\n\t\t  <\/style>\n\t\t  ","protected":false},"excerpt":{"rendered":"<p>IBM beats revenue estimates hints at sales growth IBM beats revenue estimates hints at sales growth: Shares of the Dow component rose nearly 5.1 percent to $153.93 in extended trading on Tuesday. IBM has been focusing on cloud, cybersecurity and data analytics, or what the company calls its \u201cstrategic imperatives\u201d, [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":48036,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[30053,80554,30039,30037],"class_list":["post-48030","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-updates-usa-news","tag-ibm-beats-revenue-estimates-hints-at-sales-growth","tag-latest-business-updates-usa-news","tag-usa-business-and-regional-news"],"_links":{"self":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/48030","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/comments?post=48030"}],"version-history":[{"count":0,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/48030\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media\/48036"}],"wp:attachment":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media?parent=48030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/categories?post=48030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/tags?post=48030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}