The technology giant, IBM, has just posted its second quarter earnings and they’re better than expected. According to TheStreet.com, while the analysts expected $2.89 a share, the actual earnings were $2.95.
Although the revenue has fallen 3% from a year ago to $20.24 billion, it’s better than $20.04 billion the analysts expected. However, the concerns remain as now IBM has had 17 consecutive quarters of declining revenues.
Deutsche Bank has raised its price target from $135 to $145 per share, and maintained a “hold” rating. The stock currently trades at around $160 per share, so the target isn’t upbeat at all.
“On the surface, results appear to be improving, but digging deeper, we continue to see areas of concern,” claimed bank’s analyst.
On the other hand, when it comes to a rating by TheStreet.com, it is a “buy” with a score of “B-.” The strengths seen in IBM include good cash flows, better profit margins, and good returns on equity.
When it comes to strategy, Martin Schroeter, IBM’s CFO, stated that his company is well on the way to execute its strategic imperatives plan. In the past, IBM was able to adopt to a changing industry by focusing less on hardware and more on consulting and infrastructure services.
Currently, IBM employs nearly 380,000 people and has a market cap of $150 billion, placing it among the biggest companies in the world. Known as the Big Blue, IBM has been among the leaders in the high-tech industry for decades.