IBM reported strong fourth quarter earnings, beating analyst estimates, and also raised its full year earnings guidance for 2017. IBM reported 4th quarter revenues of $21.77 billion with earnings of $5.01 per share, while the market was expecting $21.66 billion and earnings of $4.88 per share. Despite the beat, the revenue slide is yet to be arrested, as this was the 19th consecutive quarter of earnings decline for Big Blue.
The good news for IBM investors was that the company’s strategic imperatives, which includes forward-looking business lines such as Analytics, Cloud and Security, accounted for a little more than 40% of IBM’s overall revenue in 2016. This growing part of the business has not yet reached a position where it can offset the losses the company is facing from its legacy lines. But if the segment continues on its current growth trajectory, that will change within the next eight quarters. Continue Reading »