Community Bank & Trust of Waco, Texas bought a new position in International Business Machines Corp. during the fourth quarter worth approximately $4,455,000.
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CEO Ginni Rometty said IBM now derives 35 percent of its sales from cloud, analytics, mobile, social and security. (NYSE:IBM) will be reporting its fourth quarter of fiscal year 2015 earnings after the market closes today.
-Earnings Decline (Y-o-Y): -18.7%.
Earnings adjusted for one-time gains and costs were $4.84 per share. The company is expected to report full year non-GAAP earnings between $14.75 – 15.75 a share, which translates to earnings per share (EPS) in the fourth quarter of between $4.66 – 5.66 a share. Analysts on average had estimated US$22.02 billion. RBC Capital dropped their price target on International Business Machines Corp. from $150.00 to $145.00 and set a sector perform rating for the company in a research note on Friday. The cloud computing, data analytics, security and mobile computing products on which IBM has bet its future grew at a strong pace. During the third quarter, strategic imperative revenue rose by 27% year over year on an adjusted basis.
Enterprise IT vendor IBM’s revenue is on a free fall. But at some point in the next couple of years, investors should expect these strategic imperatives to become a large enough part of the business to begin driving revenue growth.
He also said that IBM plans to push its cognitive technologies into more areas of its business. Recently, Under Armour partnered with IBM to use Watson to create and provide data-backed health and fitness insights.
IBM is navigating multiple issues including a stronger US dollar, which hurts profits for a company with global units.
It also posted full-year revenues of $81.7 billion, with full year non-GAAP EPS of $14.92, down 10% on 2014, citing the divestiture of its “System x” business to Lenovo. Following the earnings, IBM stock dipped; it is down 1.28% trading at $126.50 during after-market hours.
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Schroeter again made the case for investors to judge IBM not by the annual profit contraction of 13 percent, but on the performance of technologies the company has declared to be “strategic imperatives”. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. Try any of our Foolish newsletter services free for 30 days.
