IBM profit gains 3%, but revenue falls; earnings beat expectations despite decline in sales of computer hardware
Article Abstract:
International Business Machines Corp. reported a 3% rise in net income for the first quarter, but saw revenue declines across most of its units, with an overall 4% drop in revenue and a 12% drop in computer hardware sales. Net income was reported at $1.52 billion, or 83 cents a diluted share, topping analysts' estimates of 78 cents a share. Experts say the firm added three cents a share to its earnings by means of investment gains and a lowering of interest expense. The company attributed the drop in revenue to the year-2000 computer problem, and expects improved revenue in the second half.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 2000
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IBM net rockets 42%, far over forecasts; across-the-board strength includes upside surprise in hardware, PC sales
Article Abstract:
IBM showed net income of $1.45 billion on revenue of $20.32 billion. Q1 of 1998, earnings were $1.01 billion. Hardware sales increased 7% to $8.58 billion. IBM had forecast a 2% increase, but demand for servers, mainframes, and even PC's was strong, and margins were widened by efficient selling over the Web. The services unit contributed $7.55 in revenue, nearly 37% of the total. Sales of software were up 9% from Q1 '98, to $2.9 billion. After the announcement, IBM shares were selling for $188.50 in after hours trading, up from a $171.875 close.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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As its stock takes a plunge, IBM gets sobering reminder: a dependency on 'big boxes.'(The Real Y2K Problem: Computer Sales)(International Business Machines Corp.)(Company Earnings)
Article Abstract:
IBM forecast reduced earnings as its customers adopt a 'wait and see' attitude towards the Year 2000 transition, and put off new computer hardware purchases for six months. The price of IBM shares fell 15% on the news, reducing the companies market capitalization by $29 bil. Mainframe and server sales make up 42% of IBM's $8.84 bil revenues. Orders are down 40% for the quarter for these expensive computers.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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