Published , by Ozzie Mejia
Published , by Ozzie Mejia
With more tech companies reporting their latest quarterly earnings, Shacknews is opting to check in with IBM for the first time. The company reported its Q1 2023 earnings on Wednesday afternoon and the news appears to be mostly good. IBM reported in with a revenue of $14.3 billion USD with a $1.36/share EPS, the latter of which beat out industry estimates.
"In the quarter, we remained focused on the fundamentals of our business, increasing productivity and generating operating leverage," IBM Senior VP and CFO James Kavanaugh said in the IBM Q1 2023 earnings report. "As a result, we again expanded our gross profit margin, improved our underlying profit performance and increased our cash generation. We are well-positioned to continue investing for growth and returning value to shareholders through dividends."
IBM is forecasting a rough period ahead. Reuters notes that the company has had to cut back on spending due to inflation and rising interest rates, not helped by the reduction in demand for many of its consulting services that had been flourishing during the COVID-19 pandemic. As a result, IBM cut its consulting revenue growth projections to just 6-8 percent.
IBM shares fell by $1.46 as the markets closed on Wednesday. The stock has since rebounded in after-hours trading, rising by 3 percent, as of the time of this post.
IBM's projections for the year include a growing free cash flow with a modest revenue growth. We'll be sure to keep an eye on IBM more in the months ahead, so be sure to follow the IBM topic page for more stories as they come in.