IBM (International Business Machines Corp.) published its financial reporting for the second quarter of 2017. As a result, it turned out that the net profit of the American giant had reduced by 6.9%.
The press release of the corporation specifies that the net profit for the second quarter of this year is equal to $ 2.331 billion ($ 2.48 in terms of one share). Last year, the company managed to earn $ 2.504 billion ($ 2.61 per share) for the second quarter.
A decrease in revenue was also recorded. IBM showed the revenue of $ 20.238 billion for the second quarter of 2016. This year the investors are watching a figure of $ 19.289 billion that means the decrease of 4.7%. It should be mentioned that there has been a fall in revenue for the fifth year in a row.
The real financial performance of the “blue giant” did not meet the expectations of the analysts, who expected that the company’s revenue for the second quarter of this year would be at least $ 19.5 billion. It was assumed that the profit for this reporting period would be $ 2.74 per share. Unfortunately, the reality “did not reach” the expert forecasts.
If we look at the statistics by subdivisions, the information is as follows:
The subdivision that produces software and hardware showed a 10.4% decrease in revenue;
The subdivision, promoting “cloud” services showed a fall in revenue by 5.1%;
The subdivision that develops technologies in the field of artificial intelligence, reduced the revenue by 2.5%.
Due to negative reporting, IBM’s share prices have fallen by 2.8%. The downward trend will continue.
The material was prepared with the participation of Andrey Majorov,
a leading analyst of the brokerage company CT Trade