_He said the company’s outsourcing business—“Global Technology Services”—missed internal expectations for the quarter due to lower client business volumes in the United Kingdom and Germany._
So we know the unit that will be targeted for the majority of the upcoming RA's.
By: Tae Kim
Updated Oct. 16, 2019 6:00 pm ET / Original Oct. 16, 2019 4:09 pm ET
IBM reported better-than-expected third-quarter earnings Wednesday afternoon and maintained its full-year guidance. But the technology giant missed the average revenue consensus estimate for its September quarter.
IBM (ticker: IBM) completed its acquisition of Red Hat for $190 a share in July. The $34 billion deal was IBM’s largest purchase ever and will likely be a key focus for shareholders going forward.
“Our results demonstrate that clients see IBM and Red Hat as a powerful combination, and they trust us to provide them with the open hybrid cloud technology, innovation and industry expertise to help them shift their mission-critical workloads to the cloud,” IBM Chief Execute Officer Ginni Rometty said in the press release.
IBM reported third-quarter adjusted earnings per share of $2.68, versus the $2.67 analyst consensus. It generated $18.0 billion in sales for the quarter, down 3.9% year over year and below the $18.2 billion average analyst estimate. IBM also maintained its full-year adjusted EPS guidance of “at least” $12.80 and its free cash flow expectation of approximately $12 billion.
IBM Chief Financial Officer James Kavanaugh said in an interview that the company is “very pleased” with the results thus far from Red Hat, noting that Red Hat’s sales growth rate has improved versus last year when the acquisition was announced.
He said the company’s outsourcing business—“Global Technology Services”—missed internal expectations for the quarter due to lower client business volumes in the United Kingdom and Germany.
IBM stock had dropped 5.1% to $134.80 at 5:58 p.m. in after-hours trading.