IBM: Financial Report Keeps Up with Its Predecessors
October 25, 2016
IBM’s financial results for 2015-2015 third quarter kept up with their predecessors.
The Wall Street Journal, October 18, 2016, said “IBM Profit, Sales Slip But New Units Grow.” (See page B1 in the Harrod’s Creek edition of the venerable business newspaper.) I noted this passage:
The Armonk, NY Company said Monday that third quarter revenue was $19.23 billion, down 0.3%…Big Blue said its profit fell 4% to $2.9 billion during the quarter ended in September amid weakness in its systems segment, which includes mainframe computer hardware and operating system software.
According to “Barclays Says IBM’s Q3 Not Much to Get Excited About”:
Going by the weakness in third quarter margins, Barclays said it’s led into believing that the company’s cloud business doesn’t have the scale to achieve margin at or above the corporate average. The firm termed it as not good, as the company’s strategic imperatives, including cloud, are starting to reaccelerate.
Here in Harrod’s Creek, the fans of blue chip stocks are wondering when IBM will reverse its 18th consecutive quarters of revenue decline.
I suggested to the folks hanging out at the local car repair shop that they should ask Watson. Their response:
What’s Watson. Ain’t he the guy who lives in the next town over?
I was going to explain but decided to put oil in my old car. It is getting old. I don’t think it can hang on much longer. I call it “Big Blue 2 too.” That sounds like blue tutu, doesn’t it?
Stephen E Arnold, October 25, 2016
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