IBM - Embedded Expectations Analysis - 2019 11 20
International Business Machines Corporation (IBM:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 14.3x Uniform P/E, implying bearish expectations for the firm. Moreover, management may be concerned about Red Hat, portfolio growth, and competitionSpecifically, management may be concerned about the impact of tax headwinds in Q4, and they may lack confidence in their ability to meet their full year EPS guidance. Furthermore, they may be concerned about their ability to realize acquisition synergies from Red Hat, and they may lack confidence in their ability to drive Red Hat revenue growth. Additionally, they may be concerned about ongoing revenue declines in their transaction processing platforms, and they may lack confidence in their ability to sustain growth in their cognitive applications portfolio. Moreover, they may lack confidence in their ability to sustain recent GBS growth rates, and they may be concerned about competition in the consulting space. In addition, they may have concerns about the long-term performance of their cloud business and about the sustainability of recent z15 shipment volumes. Finally, they may lack confidence in their ability to deleverage their balance sheet and in the strength of their upcoming pipeline
International Business Machines provides integrated solutions and products that utilize data, information technology, capability in industries and business processes. The company has five segments: Cloud and Cognitive Software, which provides a range of software offerings; Global Business Services, which provides consulting, systems integration, application management and business process outsourcing services; Global Technology Services, which provides project services, managed and outsourcing services, cloud-delivered services, and technical and IT support services; Systems, which provides technology and service; and Global Financing, which provides client financing, among others.
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