North America and GTS are the big losers. Brace yourselves and best of luck to you all.
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CEO reinforces Kavanaugh words. Low margin businesses within IBM are gone
https://finance.yahoo.com/video/ibm-ceo-cloud-business-114841345.html
Smoke and mirrors... IBM is a master at it... The stock should never have popped up $10. IBM will make you believe anything these days... hard to believe anyone has still faith in this company!
CFO Kavanaugh’s exact statement to analysts yesterday
But as I said earlier, GTS business, we are going to manage this business for profit, for cash and for leveraging our incumbency to move our clients in the future and provide better client value and delight them through loyalty as they move forward. And we are going to exit some low value content business. So for 2019, I would expect pretty similar performance in GTS overall on a top line, but in margin we are going to expand margin that’s in our expectations and you see that play out in the second half of 2018 and we expect that to continue.
Low margin GTS is toast
Well, they posted some positive numbers ... for now. Hopefully a few of the IBM faithfull remaining will continue to be employeed ... for now. IBM's future however is filled with landmines. Understand, they'll be selling some portions of the organization (GBS, etc.) and go deeper into debt to buy Red Hat. Assuming they sell GBS to some new owner, that new owner will not necessarily be inclined to recommend IBM solutions. Today GBS, Software, Cloud, etc. feed off of each other providing leads. That will now end. You just don't sell portions of an organization without loosing some indirect sales opportunities. It will be an interesting 2019 for IBM.
GTS the big loser as usual.
Systems HW not looking good at (23%) y/y"
Z (44%) reflecting mainframe cycle, but what accounts for the Storage (7%) decline?
Power bouncing back at 10%
Underwhelming results but given IBMs performance over the past 6 or so years , this will be taken as being significantly good news by an increasingly impatient Wall St.
Only time will tell if this is a ripple in an otherwise flat line or an uptick in the companies fortunes. Rubber hit's the road in the dissection of these numbers. Future reporting will need to include some larger upward movements to be convincing.
Q4 results were poor. Revenue down and EPS down for the quarter. The overall year reflects a bit better and shares got a pop. Investors were looking for any good news though.
Nothing has changed. The strategic imperative numbers are meaningless until IBM actually reports on what parts of IBM make this number up.
Back in Jan 2012, IBM were reporting ~$30B for Q4. We're now at $21B even after $2B on share buy backs for the quarter.
How is this a growth company? Its just being ran into the ground by utter incompetence.
IBM 4Q 2018 Earnings
January 22, 2019
https://www.ibm.com/investor/att/pdf/IBM-4Q18-Earnings-Charts.pdf