IBM Earnings Preview: Guidance And Consensus Indicates Decline In Revenue To Continue

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IBM: International Business Machines logo
IBM
International Business Machines

Technology behemoth, IBM (NYSE:IBM) is set to report its Q1 2016 earnings on April 18th, 2016. In Q4 2015, its revenues declined by 2% in constant currency (9% as reported) to $22.1 billion due to declining revenue from middleware sales  and the business services segment. However, new strategic initiatives — such as the Cloud, analytics, mobile computing, social media and security services — have helped the company to shore up its services revenues. Furthermore, systematic disinvestment from unprofitable hardware units have aided the company to post a higher profit margin during Q4 and 2015. In Q1 2016, the company expects the following:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for IBM