IBM shares fell late Wednesday after the computer giant reported better-than-expected first-quarter earnings and revenue came in slightly below estimates. The company also announced a $6.4 billion acquisition of a cloud software company HashiCorp (HCP), a deal that was almost completed a day earlier, according to the Wall Street Journal.
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IBM (IBM) said it had adjusted earnings of $1.68 per share on revenue of $14.46 billion in the March final quarter. Analysts forecast the Armonk, N.Y.-based company would report adjusted earnings of $1.60 per share on revenue of $14.53 billion, according to FactSet.
For the same period a year earlier, IBM reported adjusted earnings of $1.36 per share on revenue of $14.25 billion.
Meanwhile, the tech giant said it would pay $6.4 billion, or $35 per share, to acquire HashiCorp. The acquisition will “create a comprehensive end-to-end hybrid cloud platform for the AI era,” IBM’s press release said.
Additionally, IBM reaffirmed its previous full-year guidance for mid-single-digit revenue growth for 2024 and free cash flow of $12 billion.
“We continue to benefit from our customers’ enthusiasm and demand for enterprise AI,” IBM CEO Arvind Krishna said in the press release. “Our Watsonx and generative AI business portfolio continued to show strong momentum, growing quarter over quarter and now dwarfed.” a billion dollars since we launched watsonx in mid-2023.”
On the stock market today, IBM shares fell more than 6% to 171.51 in after-hours trading.
Further income coverage will follow.
IBM Stock: Technical Reviews
Before earnings, IBM shares 1% increased On Wednesday Trade. Shares have gained 13% and 46% this year. during the last 12 months.
Let’s get to the report: IBM According to IBD Stock Checkup, the stock had an IBD Composite Rating of 81 out of a possible 99. The score combines five separate proprietary assessments into one rating. The best growth stocks have a Composite Rating of 90 or better.
Additionally, IBM stock’s IBD Relative Strength Rating was 86 from 99.
Ahead of earnings release, IBD MarketSurge shows IBM stock has formed a flat base with a potential buy point of 199.18.
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