IBM Expects to Return to Revenue Growth in 2021 -- Earnings Review
By Maria Armental
International Business Machines Corp., which Thursday reported
results for the quarter and year ended in December, said it expects
to return to revenue growth in 2021. Here's what you need to
PROFIT: Net income for the quarter fell to $1.36 billion, or
$1.51 a share, from $3.67 billion, or $4.11 a share a year earlier.
On an adjusted basis, profit from continuing operations was $2.07 a
share. The results include a roughly $2 billion charge before
taxes. Analysts surveyed by FactSet expected an adjusted profit of
$1.81 a share.
REVENUE: Total revenue for the quarter fell to $20.37 billion
from $21.78 billion a year earlier. Analysts expected $20.68
YEAR: IBM ended the year at a profit of $5.59 billion on $73.62
billion in revenue, compared with a profit of $9.43 billion and
$77.15 billion in revenue a year earlier.
OUTLOOK: IBM expects to return to revenue growth in 2021, based
on current foreign exchange rates, and said it expects adjusted
free cash flow of $11 billion to $12 billion in 2021. Adjusted free
cash flow excludes approximately $3 billion of cash impacts from
the company's structural actions initiated in the fourth quarter
and the transaction costs associated with the separation of the
managed infrastructure services business.
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires
January 21, 2021 16:31 ET (21:31 GMT)
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