How Will Big Blue’s Red Hat Deal Look Post Their Earnings Report On April 16th?

By John Heerdink LinkedIn

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide.

IBM or “Big Blue” reports its Q1 2019 earnings tomorrow, Tuesday prior to the market’s open. Many are wondering how we might begin to see the significant contribution and growth from its open source software business Red Hat acquired in October 2018 but is not expected to close until the second half of 2019. Many believed that this single acquisition completely changed the cloud computing landscape in the emerging $1 trillion growth market and would transform IBM. Red Hat is viewed as the world’s leading provider of enterprise open source solutions, using a community-powered approach to deliver high-performing Linux, cloud, container, and Kubernetes technologies. They seek to help companies standardize across environments, develop cloud-native applications, and integrate, automate, secure, and manage complex environments with award-winning support, training, and consulting service.

Analyst James Schneider of Goldman Sachs stated that IBM “needs to show a material improvement in terms of its revenue and margin trajectory for the stock to move higher from current levels.”

Across the analysts’ spectrum, we find that that the consensus EPS forecast for the quarter is at $2.22.

To learn more about IBM and to track its ongoing progress please visit the Vista Partners IBM Coverage Page.

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As IBM Faces Falling Revenue, Red Hat Deal May Change Narrative

The company in October announced that it would acquire Red Hat, and while the deal isn’t expected to close until the second half of the year, analysts are looking ahead to the prospects of the combined company, and whether Red Hat’s position in the fast-growing cloud-computing market will be enough to..

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