IBM Earnings Report: Here’s What To Expect

IBM (IBM) announces fourth-quarter results Monday, the tech giant’s first earnings report since spinning off Kyndral, its information-technology services business. The IBM earnings report arrives after the close.

Adjusted for the Kyndral spinoff, analysts expect IBM earnings of $3.14 a share, compared with $1.88 in the year-ago period. Analysts see revenue at $16.1 billion, up 2.5%.

IBM completed the spinoff of Kyndral — formerly known as Managed Infrastructure Services — on Nov. 3. The company says it has reclassified the unit to discontinued operations, and thus removed it from 2019, 2020 and 2021 results. IBM plans to report fourth-quarter results on a continuing-operations basis that excludes Kyndral.

IBM spun off the consulting unit so it can focus more intently on cloud computing and artificial intelligence. And it’s for the same reason that IBM sold its health care data analytics business from its Watson Health unit to a private equity firm for more than $1 billion.

IBM stock was down 2.7% to 125.75 during afternoon trading on the stock market today.

Expected Guidance In IBM Earnings Report

The IBM earnings report is likely to provide guidance on the company’s outlook. Wall Street calls for 2022 revenue of $59.8 billion, with profits of $10.09 a share.

IBM has undergone a long and massive restructuring. The multiyear transformation of IBM has focused on developing and expanding what the company calls an open hybrid cloud platform. A hybrid cloud architecture means IBM can provide its customers with both a public cloud and a private cloud, which gives a company extra network security.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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