IBM posted its 18th consecutive quarter of declining revenue.
International Business Machines is still in turnaround mode.
The business technology giant posted its 18th consecutive quarter of declining revenue, but it beat analyst estimates for its latest quarter on Monday. Still, on Tuesday, IBM’s shares fell 2.6% to $150.72.
IBM ibm said that its so-called “strategic imperatives” of cloud computing, artificial intelligence, and related data crunching, and cyber security grew 16% to $8 billion. Still, several prominent analysts expressed concern that IBM’s faster-growing areas, like the IBM Watson data crunching service, are still not offsetting the declines in its legacy software business.
Some analysts expressed optimism that the company’s 44% gain in cloud revenue shows that IBM CEO Ginni Rometty’s plans to focus on higher-growth businesses are working. At Fortune’s Most Powerful Women Summit, Rometty emphasized IBM’s commitment to Watson and related technologies, saying that while “some companies are high-growth,” IBM is “high-value.”
Here’s a roundup of what analysts are saying:
From Sweta Killa, an analyst at Zacks Investment Research:
From Toni Sacconaghi, Jr., a senior research analyst at Bernstein:
From Barclays analysts Mark Moskowitz and Daniel Gaide:
From CFRA Research equity analyst David Holt:
From Credit Suisse analysts including Kulbinder Garcha:
For more about IBM, watch:
From John DiFucci, equity analyst at Jefferies, via Barron’s: