IBM Is Still Dead Money

April 21, 2015 1:12 PM

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IBM’s March quarter results had some positive nuggets but the company is still struggling to create revenue and free cash flow growth. IBM generated $19.6 billion in revenue which was down a reported 12% but was flat year over year when adjusted for currency (8 percentage points) and divestitures (4 percentage points). Operating or non-GAAP EPS of $2.91 beat the Street’s expectations of about $2.81 with lower taxes helping for about $0.02 of the beat. IBM kept is full year non-GAAP EPS guidance the same at $15.75 to $16.50.

IBM’s Strategic Imperatives (Data, Cloud, Social, Mobile and Security) grew greater then 30% year over year with its cloud business growing over 75%. While these growth rates are impressive they need to be taken with a grain of salt.

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