The software, cloud-based based provider IBM, unveiled its Q4 2020 earnings.
According to the statement, in Q4 2020, IBM had an EPS of $2.07, which came higher than the $1.79/ share consensus. At the same time, the revenues were of $20.37 billion, lower than the $20.67 billion expected by the market.
On an annualized basis the revenue fell 6% - the most significant drop in five years, also marking the fourth consecutive quarter of declines. The decrease came even after the company switched focus to cloud computing and artificial intelligence.
Many of the company’s segments reported losses in the past quarter, the most significant being in Global Technology Services, and Cloud and Cognitive Software, 6% and 5%, respectively. The first produced $6.57 billion in revenue, while the latter, $6.84 billion.
No specific figures were given about future expectations, but IBM believes that the 2021 overall revenue will increase, and the company will have available $11 billion - $12 billion in free cash flow.
Since the beginning of the year, the company’s stock price added 5%, while USA500 gained 3%.