IBM’s Year-on-year Revenue Has Plummeted to a 5-year Low, the Company Expects Recovery in 2021

Pictured: tall, glass-covered skyscrapers

Source: Dreamstime

Reading time: 2 minutes

On 20.01, Wednesday, IBM shares tumbled by 7% in extended trading after the company reported fourth-quarter revenue that disappointed Wall Street for a fourth consecutive time.

Here are the main financial highlights from IBM’s Q4 earnings release:

 

Total revenue: $20.37 billion versus expectations for $20.67 billion

– Earnings per share: $2.07 per share versus expectations for $1.79 per share

– Revenue from the Cloud and Cognitive Software segment: $6.84 billion or a 5% year-over-year decline 

– Revenue from the Global Technology Services unit: $6.57 billion in revenue or a 6% year-over-year decline 

– Revenue from Global Business Services (consulting services): $4.17 billion or a 3% year-over-year decline 

– Revenue from sales of mainframe computers and other hardware: $2.50 billion, or a 8% year-over-year decline 

– New acquisition: in the quarter, IBM had agreed to buy cloud consulting services provider Nordcloud for an undisclosed sum.

 

“The challenging environment we have seen since March continued with the shift in clients buying behaviors and priorities. Given the level of macroeconomic uncertainty, more clients tended to move toward shorter duration engagements impacting our software revenue.”

Jim Kavanaugh, chief financial officer for IBM

 

So far, the company’s earnings per share fell by 66% – the biggest decline in three years, partly due to the $2.04 billion pre-tax charge in relation to IBM’s plan announced in October to turn its Managed Infrastructure Services division into a separate public company by the end of this year.

 

Guidance for fiscal 2021 

While the company did not issue any black-on-white earnings guidance, it did share that it expects revenue to grow in 2021, as well as to accumulate $11 billion to $12 billion in free cash flow.


Upcoming reports

See the full list of upcoming earnings reports for 25 – 29 January in the tables below.

Monday, 25th January 2021

Country of originCompany nameFiscal period
USAKimberly-Clark Corp
Q4 2020
United KingdomSuperdry PLC
Half Year 2021
Kingdom of the NetherlandsKoninklijke Philips NV
Q4 2020

Tuesday, 26th January 2021

Country of originCompany nameFiscal period
CanadaCanadian National Railway Co
Q4 2020
USAStarbucks Corp
Q1 2021
USACapital One Financial Corp
Q4 2020
USAAdvanced Micro Devices Inc
Q4 2020
USACH Robinson Worldwide Inc
Q4 2020
USAMicrosoft Corp
Q2 2021
FranceLVMH Moet Hennessy Louis Vuitton SE
Full Year 2020
USAHarley-Davidson Inc
Q4 2020
USAFreeport-McMoRan Inc
Q4 2020
USALockheed Martin Corp
Q4 2020
USAGeneral Electric Co
Q4 2020
USAVerizon Communications Inc
Q4 2020
USAD.R. Horton Inc
Q1 2021
USA3M Co
Q4 2020
USAJohnson & Johnson
Q4 2020
USAAmerican Express Co
Q4 2020
USAXerox Holdings Corp
Q4 2020
USAPaccar Inc
Q4 2020
USAXilinx Inc
Q3 2021
SwitzerlandNovartis AG
Q4 2020
SwitzerlandUBS Group AG
Q4 2020

Wednesday, 27th January 2021

Country of originCompany nameFiscal period
USALevi Strauss & Co
Q4 2020
USAWhirlpool Corp
Q4 2020
USAApple Inc
Q1 2021
USALam Research Corp
Q2 2021
USATesla Inc
Q4 2020
USASLM Corp
Q4 2020
USAFacebook Inc
Q4 2020
USANorfolk Southern Corp
Q4 2020
USABlackstone Group Inc
Q4 2020
USACorning Inc
Q4 2020
USAGeneral Dynamics Corp
Q4 2020
USAAbbott Laboratories
Q4 2020
USAAT&T Inc
Q4 2020
USABoeing Co
Q4 2020
USAAutomatic Data Processing Inc
Q2 2021
USAProgressive Corp
Report for December 2020
USAAnthem Inc
Q4 2020
USALas Vegas Sands Corp
Q4 2020
JapanFujitsu General Ltd
Q3 2021
GermanySoftware AG
Full Year 2020
USAIllumina Inc
Q4 2020
CanadaCelestica Inc
Q4 2020
Kingdom of the NetherlandsKoninklijke KPN NV
Q4 2020
SwedenSkandinaviska Enskilda Banken AB
Q4 2020

Thursday, 28th January 2021

Country of originCompany nameFiscal period
USAMondelez International Inc
Q4 2020
USAEastman Chemical Co
Q4 2020
USAAmazon.com Inc
Q4 2020
USAVisa Inc
Q1 2021
USAWestern Digital Corp
Q2 2021
USAUnited States Steel Corp
Q4 2020
USAMarsh & McLennan Companies Inc
Q4 2020
USAAltria Group Inc
Q4 2020
USAValero Energy Corp
Q4 2020
USAMcdonald's Corp
Q4 2020
USANucor Corp
Q4 2020
USAFranklin Resources Inc
Q1 2021
USAAlexion Pharmaceuticals Inc
Q4 2020
USANorthrop Grumman Corp
Q4 2020
USAMastercard Inc
Q4 2020
USAAmerican Airlines Group Inc
Q4 2020
USADupont De Nemours Inc
Q4 2020
USAComcast Corp
Q4 2020
South KoreaSamsung Electronics Co Ltd
Q4 2020
USAVertex Pharmaceuticals Inc
Q4 2020
JapanTokyo Electric Power Company Holdings Inc
Q3 2021
SwitzerlandSTMicroelectronics NV
Q4 2020
NorwayPGS ASA
Q4 2020
United KingdomDiageo PLC
Half Year 2021
JapanFujitsu Ltd
Q3 2021
JapanCanon Inc
Full Year 2020

Friday, 29th January 2021

Country of originCompany nameFiscal period
USAColgate-Palmolive Co
Q4 2020
IrelandJohnson Controls International PLC
Q1 2021
USABroadridge Financial Solutions Inc
Q2 2021
USAEli Lilly and Co
Q4 2020
USAWeyerhaeuser Co
Q4 2020
USAChevron Corp
Q4 2020
USAHoneywell International Inc
Q4 2020
USACaterpillar Inc
Q4 2020
IndiaTata Motors Ltd
Q3 2021
SpainBanco Bilbao Vizcaya Argentaria SA
Q4 2020
GermanySAP SE
Q4 2020
SwedenTelefonaktiebolaget LM Ericsson
Q4 2020
SwedenTelia Company AB
Q4 2020
JapanNEC Corp
Q3 2021
USAJuniper Networks Inc
Q4 2020

***

Looking to trade on the global markets, but have little or no experience? Open a demo account in Delta Trading and test your boldest strategies in a real market environment, without the risk of losing real funds.

 

Posted in Market news and tagged , , , .

Leave a Reply

Your email address will not be published. Required fields are marked *