IBM's stock fell as much as 4 percent on Tuesday after the company said it generated less revenue than analysts expected in the first quarter.
IBM boxed its guidance of at least $ 13, 90 in earnings per share, except some items for the whole of 2019. Analysts had left behind after $ 13.91 in earnings per share, except for some items, for the whole year, acc
In the first quarter, IBM said it had sold its mortgage lending business to Mr. Cooper Group and it said that later this year it would hit n ed its business to provide working capital to certain types of information technology.
IBM has changed its reporting structure for the income statement for the quarter. The company no longer has a Technology Services & Cloud Platforms segment. Now it has Cloud & Cognitive Software and Global Technology Services business segments. The Group's consolidated results are unchanged.
IBM's Global Technology Services segment, the largest segment of the new reporting structure, generated revenue of $ 6.88 billion, down 7 percent year-round. It includes infrastructure and shooting services, along with technology support services.
The Cloud & Cognitive Software segment – which contains cognitive applications, cloud and data platforms and transaction processing platforms – came to $ 5.04 billion in revenue, down 1.5 percent.
The business segment Global Business Services had a turnover of $ 4.12 billion, which was basically flat. System revenue was $ 1.33 billion, down 11 percent.
The company said that Systems growth was "compensated by the impact of the IBM Z product cycle dynamics." In the first quarter of 2018, IBM reported partial revenue growth thanks to companies that upgraded to new mainframe technology, and Tuesday's performance doesn't compare well with that. Revenue from Z hardware, part of Systems, declined 38 percent.
Global funding, of $ 406 billion, was about flat. IBM also reported $ 417 million in "other" revenue, a way to report revenue from the businesses that IBM depends on.
IBM did not reveal how much of its total revenue from the quarter comes from strategic imperatives, which are areas the company has looked for after growth: analytics, cloud, mobile, and security. In 2018, half of IBM's revenue came from strategic imperatives. IBM said the annual rate of return on cloud delivered as a service was $ 11.7 billion, up 10 percent.
IBM's acquisition of Red Hat for $ 34 billion is expected to close in the second half of this year. "IBM is winning new, even cloud-native, customers before RHT," nominating Instinet analysts led by Jeffrey Kvaal wrote in a note distributed to clients on April 9. "OpenShift [a Red Hat product] should help IBM win new customers and new workloads that companies start directing mission-critical applications from public or private cloud premises."
The IBM stock is up nearly 28 percent since the beginning of 2019.  Managers will discuss the results with analysts at 5 pm Eastern time.
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