The net profit of the American International Business Machines Corp. – IBM (NYSE: IBM), the world's largest provider of computer services, fell to $ 2.02 billion in January-March, or $ 2.09 per share, compared with $ 2.42 billion, or $ 2.36 per share for the same period in 2015. The adjusted operating profit fell to $ 2.35 per share from $ 2.91 per share, according to a company press release.
IBM International Business Machines Corp reported its worst quarterly earnings in the last 14 years because the new businesses, including in the area of cloud and mobile software, has not been able to cover the failures of the traditional areas of the company.
Quarterly sales fell 5%, to $ 18.68 billion. The decline has continued for the 16th consecutive quarter.
The analysts surveyed by Bloomberg on average were evaluated adjusted earnings on $ 2.09 per share on revenue of $ 18.3 billion.
IBM is selling its low-profit and unprofitable hardware division to improve profitability. The company is now focused primarily on cloud computing and data analysis.
The revenue from analytical services fell in the first quarter by 1.7%, to $ 3.98 billion, while technology services and cloud platform brought the company $ 8.59 billion, which is 1.5% less than last year.
Revenues of the division involved in the supply of computer equipment tumbled 21.8% to $ 1.89 billion.
IBM expects to receive in 2016 a net profit per share of at least $ 13.5. The experts are now predicting an average of $ 13.54 per share.
On Tuesday, the shares of the company fell 1.5% in electronic trading after the publication of reports.
Yesterday, the Dow Jones index closed the session 0.6 % higher, to 18004.16, S & P 500 rose 0.65 % to 2094.34, and Nasdaq Composite rose 0.44 % to 4960.02.
All 10 key S&P sectors rose, led by the rise of the energy sector up 1.59 %. The sector of secondary goods and services rose 0.91 %.