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.
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