Infrastructure revenue concerns loom over IBM ahead of Q2 report
IBM (IBM) is scheduled to report results of its fiscal second quarter after the market close on July 22, with a conference call scheduled for 5:00 pm ET. What to watch for: PROFIT WARNING: Last week, IBM released selected preliminary Q2 results, guiding for Q2 adjusted earnings per share of $2.93 on revenue of $17.2B. A the time, analysts were expecting the company to report Q2 EPS of $3.02 on revenue of 17.85B, but those figures have since fallen to $2.93 and $17.18B, respectively. Commenting on the pre-announcement, IBM CEO Arvind Krishhna said, "I want to spend some time explaining what we experienced in the quarter that led to the Software and Infrastructure performance shortfall you see above. When we discussed our expectations with you in April, we noted that we would be wrapping on the launch of z17 in the second quarter. Given this was the strongest start to a mainframe program in our history, we expected Infrastructure revenue to decline low-single digits for the year, beginning this quarter. What played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing. In the last few.
IBM (IBM) is scheduled to report results of its fiscal second quarter after the market close on July 22, with a conference call scheduled for 5:00 pm ET.
What to watch for: PROFIT WARNING: Last week, IBM released selected preliminary Q2 results, guiding for Q2 adjusted earnings per share of $2.93 on revenue of $17.2B.
A the time, analysts were expecting the company to report Q2 EPS of $3.02 on revenue of 17.85B, but those figures have since fallen to $2.93 and $17.18B, respectively.
Commenting on the pre-announcement, IBM CEO Arvind Krishhna said, "I want to spend some time explaining what we experienced in the quarter that led to the Software and Infrastructure performance shortfall you see above.
When we discussed our expectations with you in April, we noted that we would be wrapping on the launch of z17 in the second quarter.
Given this was the strongest start to a mainframe program in our history, we expected Infrastructure revenue to decline low-single digits for the year, beginning this quarter.
What played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing.
In the last few.