IBM Earnings Continue to Fall – Growth Potential In New Businesses Encouraging – Buyers May Benefit
Shares of International Business Machines Corp. (IBM) dropped 3.04% to $150.07 per share in extended-hours trading on Monday after the company reported overall revenue that fell for the 18th consecutive quarter.
IBM earned $2.85 billion, or $2.98 a share, in the third quarter, compared with $2.95 billion in the same period last year. Excluding charges, IBM reported earnings of $3.29 a share in the quarter ending September 2016, topping economists’ forecast of $3.23 a share. IBM’s revenue came in at $19.2 billion, which was also above expectations. However revenue remained flat compared to the year-ago quarter. The company retained its 2016 projection of adjusted earnings of at least $13.50 a share.
Even after its shares reversed lower, having ticked up 0.2% in the regular trading day, outlook for the New York-based technology seems promising with some growth in newer businesses such as cloud computing and artificial intelligence. Cloud revenue grew 2.4% to $8.75 billion during the quarter.
IBM Trade suggestion
Buy Limit at 151.50, take profit at 153.00, stop loss at 150.00