The company had a net loss of $3.2bn, owing
to the impact of a pension settlement charge
$3.2B? What lawsuit was this? Or was it a governmental agency penalty?
https://www.ft.com/content/b115f85c-a1ff-47ab-90cc-3425ab377406#post-1643e21f-d3fe-461b-8e16-94149f1cf64d
Jaren Kerr in New York
IBM forecast revenue growth for the full year above its previous guidance following better than expected third-quarter earnings, pushing shares higher in extended trading.
The IT services provider said it expected full-year revenue growth “above our mid-single digit model”, having said three months ago it expected growth to be just at the “high end” of its forecast.
That suggests full-year revenue higher than the $59.8bn pencilled in by analysts ahead of the company’s third-quarter results on Wednesday, and which implied a 4.3 per cent increase over 2021.
IBM reported a 6 per cent year-on-year increase in revenues to $14.1bn, which comfortably beat Wall Street forecasts for $13.5bn. The company had a net loss of $3.2bn, owing to the impact of a pension settlement charge, but after adjusting for this, earnings of $1.81 a share came in 4 cents ahead of analysts’ expectations.
“IBM delivered strong revenue growth in the quarter, reflecting our continued focus on the execution of our strategy,” said IBM’s chief executive Arvind Krishna. “With our year-to-date performance, we now expect full-year revenue growth above our mid-single digit model.”
IBM said it expected about $10bn in free cash flow in 2022, in line with market forecasts.
Shares of the company rose 4.8 per cent in after-hours trading on Wednesday.