IBM

July 30, 2020 Summary IBM has been one of the poorest performing enterprise IT companies for years now. This was the first quarter in which new CEO Arvind Krishna was the company CEO. The company announced what can best be described as a mixed quarter with plenty of winds – both head and tail to…

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July 25, 2019 Summary IBM’s earnings release last week was well received and the shares have further appreciated after a strong YTD performance. IBM once again missed its revenue targets. IBM has provided a minimum of guidance with the expectation of fleshing out expectations on 8/2 when it discusses its post Red Hat future. A…

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Does Red + Blue = Green

October 30, 2018 Summary IBM announced its agreement to acquire Red Hat for cash. The purchase price is $190 share – a 62% premium to Red Hat’s prior quotation. The EV/S level of the transaction, based on prior former growth assumptions for Red Hat, is around 8.5X-9X. The transaction is all about revenue synergy and…

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Apr. 23, 2018 Summary IBM reported the results of its fiscal Q1 last week. The quarter nominally was an upside in terms of both revenue and EPS. All of the revenue upside was driven by currency, while the EPS upside was a factor of currency movements, tax rates (basically discrete items) and share repurchase. The company…

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Apr. 23, 2018 Summary IBM reported the results of its fiscal Q1 last week. The quarter nominally was an upside in terms of both revenue and EPS. All of the revenue upside was driven by currency, while the EPS upside was a factor of currency movements, tax rates (basically discrete items) and share repurchase. The…

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Jan. 23, 2018 Summary IBM reported the results of its quarter late last week. Once again the results proved disappoint and the shares sank. The outlook, too, was both tendentious and not particularly investor friendly. IBM continues to lose market share across almost all of the areas in which it competes. At the moment, results…

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Oct. 19, 2017 Summary IBM reported the results of its 3rd quarter Tuesday afternoon. The results were seen as a beat and potentially a sign that IBM’s long period of decline is ending. A more detailed consideration of results does not result in support for that contention. Much of the upside was the result of…

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Jul. 27, 2017 Summary IBM reported yet another disappointing quarter when it released its Q results last week. This article searches both for the “what” but equally for the “why.” The evidence suggests that IBM is seriously under-investing in its growth segments. The result of this under-investment continues to be market share losses and performance…

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Apr. 20, 2017 Summary IBM reported results of its Q1 operations. Results included a modest beat of non-GAAP earnings, expectations, a revenue miss, a guidedown for expected Q2 results, and a very weak performance of gross margins. The shares contracted about 5% in trading, but they are still up about 40% over the past 14…

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Dec. 15, 2016 Summary Investors have been very kind to IBM’s shares this past year, and they have generated loads of positive alpha for investors. Analysts have forecast that IBM will show some growth in earnings and stop shrinking the top line next year. There are some significant impediments to the realization of such a…

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