IBM recorded again a decline in revenues, lower than previous quarters due to growth of its IT dematerialized.
IBM: lower results but beyond analysts’ expectations
The IBM group has published on Monday 17 October 2016 its financial results for the period from the third quarter of 2016, higher than analyst expectations, despite a decline in under 2.6 points in post-session on Wall Street. The group, however, shows lower results, partly saved by the growth of the Cloud. The turnover is 19.29 billion dollars down 0.3 points compared to the third quarter of 2015.
With the changes to the cloud computing market the IBM group recorded revenues down. For four years, this is the first time that they remain relatively stable. Revenues recorded a further decline, the less important for 18 months, thanks to the growth of its core businesses of up to + 16 points to $ 8 billion in revenue. During the third quarter of 2016 corresponds to the period from July to September, Big Blue posted a net profit per share of 3.29 dollars and a turnover of 19.29 billion dollars down -0.3 point compared to last year in the same period.
Within the strategic activities of the group, including include cloud computing, with a + 44% revenue for the quarter. Analytical services rose by 15%, security is booming 11% and evolving mobility of 19%. All these activities now represents 41.7% of total turnover of Big Blue. Gross margin was down 2.1%. Earnings per share, adjusted data amounted to 3.29 dollars per share, down from a point over the year, but above analysts’ forecasts.
It can be seen that the various solutions from IBM allow companies to reduce group revenue decline and profits but again the hardware division recorded the largest decline with sales business of $ 1.6 billion, a drop of 21 points in one year. Big Blue, however, provides better results in the future, in part, the development of the Strategic Imperative Operations Division with the Cloud and related services.