CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

IBM share price slides on Q3 earnings disappointment as sales slump continues

The IT and consulting services company saw its shares slide in after hours trading, after its Q3 results failed to impress investors.

IBM shares are down 5% to $134 in after-hours trading after its Q3 results disappointed investors by revealing its prolonged sales slump has continued into the second-half of the year.

The IT and consulting services company published its latest set of results after the market closed on Wednesday, with revenues down for the firth consecutive quarter.

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IBM sales miss the mark, but earnings edge out estimates

IBM saw its revenues miss analysts forecasts by $190 million, with total sales for the quarter coming in at $18 billion. However, its earnings per share narrowly beat analysts’ estimates by $0.02 at $2.68.

‘We continued our focus on the strength of our balance sheet in the third quarter,’ IBM CEO James Kavanaugh.

‘We generated $12.3 billion in free cash flow over the last 12 months and with our disciplined financial management we reduced debt by nearly $7 billion in the quarter, while maintaining a strong cash balance.’

IBM looks to revive growth with $32 billion Red Hat acquisition

IBM acquired open-source software company Red Hat in July for $34 billion – making it the largest deal in the company’s history.

The century-old IT firm is placing a major bet on hybrid cloud technology to reinvigorate growth and reverse declining sales.

‘This company has had to be reinvented many times,” IBM CEO Ginni Rometty told Bloomberg in September. ‘It’s something many other companies have yet to face.’

‘It is one thing to put out new products, but it is something else when the competitive landscape attacks your core business models and you have to develop a new one,’ she added.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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