IBM Corp reports £1.78 billion of net income in the fiscal third quarter
- IBM Corp reports £1.78 billion of net income in the third quarter.
- The technology company posts £13.59 billion of revenue in Q3.
- The American multinational refrains from giving future guidance.
International Business Machines Corp. (NYSE: IBM) said on Monday that its revenue fell further in the fiscal third quarter. The company also refrained from giving future guidance due to the COVID-19 uncertainty.
IBM is currently in the process of spinning off its IT infrastructure services business – a move that as per CFO James Kavanaugh will result in £1.78 billion of charges in the fiscal fourth quarter.
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IBM slid close to 2.5% in extended trading on Monday. Including the price action, shares of the company are now trading at £94.28 versus £104.56 per share at the start of 2020. In March, the stock had tumbled to £73 per share due to COVID-19 disruptions. Interested in investing in the stock market online? Here’s a simple guide to get you started.
IBM’s Q3 financial results versus analysts’ estimates
The technology company reported £1.78 billion of net income in Q3 that translates to £1.99 per share versus the year-ago figure of a higher £2.07 per share. Earnings attributed to continuing operations printed on Monday at £1.46 per share versus a slightly lower £1.44 per share in the comparable quarter of last year.
In terms of revenue, IBM posted £13.59 billion in the third quarter. In Q3 last year, IBM’s revenue had come in at a higher £13.92 billion. On a year to date basis, the American multinational’s revenue has declined in 29 out of the previous 33 quarters.
For the fiscal fourth quarter, analysts forecast IBM to report £16.07 billion of revenue and £3.16 of earnings per share. The American software company, ServiceNow partnered with IBM last week on AIOps.
Other prominent figures in IBM’s earnings report
At £4.63 billion, IBM said that its cloud revenue in the fiscal third quarter saw a 19% growth. Revenue from global technology services registered at £5.02 billion versus £4.82 billion expected. Revenue from global business services came in at £3.09 billion. Street forecast for revenue from this segment stood at £3.01 billion.
Other prominent figures in the Armonk-based company’s earnings report on Monday include £1 billion in systems revenue versus £1.20 billion expected. In the comparable quarter of 2019, IBM had noted £5.17 billion, £3.18 billion, and £1.14 billion of revenue from global technology services, global business services, and systems revenue, respectively.
At the time of writing, IBM is valued at £86.32 billion and has a price to earnings ratio of 14.24.