IBM revenue down, stocks fall
The company expects revenue growth in 2021
Stocks impacted: IBM (IBM)
IBM's fourth-quarter report was a mixed bag. The company reported a 6% decline in revenue from a year ago (the fourth consecutive quarter of declines) while total cloud revenue was $7.5 billion, up 10%. IBM reported non-GAAP earnings of $2.07 a share and $1.41 a share under generally accepted accounting practices. Sales from cloud and cognitive declined 4.5% to $6.8 billion after two years of growth. The company expects revenue growth in 2021, along with $11 billion to $12 billion in free cash flow. As a reminder, the firm is preparing to split itself into two public companies and the namesake firm will focus on the hybrid cloud. After the company reported weaker-than-expected revenue, its shares fell as much as 7% in extended trading overnight.
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