IBM shares lower after trading: IBM reports profit slump | 10/17/19


The IT group IBM has not made any further growth despite the first-time consolidation of the multi-billion dollar acquisition Red Hat.

Sales fell for the fifth consecutive quarter. IBM did worse than analysts expected. The share falls in after-hours trading by about 3 percent.

For the period from July to September, revenue decreased to $ 18.03 billion from $ 18.76 billion in the same period last year. Analysts had predicted 18.22 billion in the Factset consensus. It was the fifth consecutive decline in sales.

All in all, "Big Blue" earned $ 1.67 billion from $ 2.69 billion a year ago. Adjusted for special items, earnings per share reached $ 2.68. The analysts had expected $ 2.66.

IBM completed the $ 34 billion acquisition of Red Hat in July. It was the largest acquisition in the 108-year company history. With Red Hat, IBM wants to start in the so-called "hybrid cloud". This means that companies do most of their business through the cloud, leaving the most sensitive data in the house.

The forecast for the full year, lowered in August, confirmed IBM. Earnings per share are expected to reach "at least" $ 12.80.

By Wallace Witkowski

NEW YORK (Dow Jones)

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