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Stock Market & Financial Investment News

News Breaks
April 16, 2014
12:30 EDTLNVGY, IBMEarnings Preview: Cantor more upbeat than Citi on IBM ahead of report
International Business Machines (IBM) is expected to report first quarter earnings after the close on Wednesday, April 16, with a conference call scheduled for 4:30 pm ET. IBM, an information technology services and software company, is a member of the Dow Jones Industrial Average. EXPECTATIONS: Analysts are looking for earnings per share of $2.54 on revenue of $22.91B. The consensus range is $2.49-$2.62 for EPS on revenue of $22.21B-$23.19B, according to First Call. In response to a question on its Q4 earnings conference call, IBM said that an analyst's math which put the company's Q1 EPS coming in at $2.50 was "consistent with how we would see it as well." LAST QUARTER: IBM reported Q4 EPS of $6.13, beating the consensus estimate of $5.99. Revenue came in at $27.7B, trailing the consensus $28.25 projection. IBM reported Q4 software segment revenue grew 3% to $8.1B and that technology services revenue fell 4% to $9.9B. IBM also said its sees 2014 EPS of "at least" $18.00, which compared to consensus at the time of $17.97 and current consensus of $17.84. STREET RESEARCH: In a note to investors this morning, Cantor Fitzgerald analyst Brian White said that he expects IBM to meet the firm's $2.53 per share earnings estimate for the quarter. White added that he expects all of IBM's segments to decline sequentially due to seasonality, but also said that he believes IBM's profit cycle bottomed out in Q1 and that investors could "warm up" to the stock this year. Cantor has a Buy rating and $220 price target on shares of IBM. Yesterday, Citigroup downgraded its rating on IBM to Neutral from Buy, citing the stock's valuation. The firm lowered its price target for shares to $200 from $235. About a week ago, Deutsche Bank initiated coverage of IBM with a Hold rating and $200 price target. NEWS: On January 23, two days after its last quarterly report, IBM agreed to sell its x86 server business, including System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, to Lenovo (LNVGY) for about $2.3B in cash and stock. IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances. Within the next week, Re/code reported, citing sources, that IBM was exploring the sale of its product line focused on software defined networking, or SDN, that was not included in the sale to Lenovo. The company may be seeking as much as $1B for the assets, the report claimed. In February, Bloomberg said IBM was focused on finding a joint-venture partner for its chip-making unit after failing to find a buyer for the assets. The next month, IBM CEO Virginia Rometty reportedly stated in a letter to investors that the company is not exiting hardware entirely. Rometty wrote that "IBM will remain a leader in high-performance and high-end systems, storage and cognitive computing, and we will continue to invest in R&D for advanced semiconductor technology," as quoted by The Wall Street Journal. PRICE ACTION: In afternoon trading ahead of tonight's report, IBM is flat near $197 per share. IBM shares have risen 4.5% over the last three months.
News For IBM;LNVGY From The Last 14 Days
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July 7, 2015
07:01 EDTIBMAllen & Company to hold a conference
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July 1, 2015
06:03 EDTIBMIBM completes sale of its semiconductor business to Globalfoundries
IBM announced that the acquisition of the company's global commercial semiconductor technology business by Globalfoundries has been completed. With the closing of this transaction, Globalfoundries becomes IBM's exclusive semiconductor processor technology provider for the next 10 years.
05:54 EDTLNVGYStagnant tablet demand to continue in 2H15, DigiTimes reports
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05:53 EDTIBMIBM and BOE sign agreement to develop health management platform, DigiTimes says
IBM and BOE have signed an agreement to develop a new health management data platform, reports DigiTimes. The companies will form a team to build health management systems specializing in cognitive computing and other health management areas. Reference Link
June 30, 2015
05:59 EDTIBMGartner: Worldwide IT spending on pace to decline 5.5% in 2015
Worldwide IT spending is on pace to total $3.5T in 2015, a 5.5% decline from 2014, according to the latest forecast by Gartner, Inc. Analysts attribute the decline to the rising U.S. dollar. In constant-currency terms, the market is projected to grow 2.5%. In Gartner's previous forecast in April, it had forecast IT spending to decline 1.3% in U.S. dollars and grow 3.1% in constant currency. "We want to stress that this is not a market crash. Such are the illusions that large swings in the value of the U.S. dollar versus other currencies can create," said John-David Lovelock, research vice president at Gartner. "However, there are secondary effects to the rising U.S. dollar. Vendors do have to raise prices to protect costs and margins of their products, and enterprises and consumers will have to make new purchase decisions in light of the new prices." Communications services will continue to be the largest IT spending segment in 2015 with spending at nearly $1.5T. However, this segment is also experiencing the strongest decline among the five IT sectors. In the device market, mobile phones continue to be the leading segment, with growth in Apple phones, especially in China, keeping overall phone spending consistent. However, overall smartphone unit growth will start to flatten. The PC and tablet market continues to weaken. The expected 10 percent increase in average PC pricing in currency-impacted countries is going ahead, delaying purchases even more than expected. Excessive PC inventory levels, especially in Western Europe, need to be cleared, which will delay Windows 10 inventory in the second half of the year. Within the data center systems segment, storage and network markets are both expected to see weaker growth in U.S. dollar terms as a result of the appreciation of the U.S. dollar. Reference Link
June 29, 2015
06:05 EDTIBM, LNVGYNotebook demand expected to be weaker than expected in 2H15, DigiTimes reports
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June 26, 2015
05:51 EDTLNVGYFoxconn expects to be largest handset, tablet ODM/OEM in 2015, DigiTimes says
Foxconn Chairman Terry Guo said the company is set to be the largest OEM/ODM for handsets, tablets and desktops in 2015, reports DigiTimes. Guo added that Foxconn will establish component supply chains to increase its advantage over competitors. Reference Link
June 25, 2015
07:17 EDTIBMRed Hat to hold a summit
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June 24, 2015
17:57 EDTIBMWall Street applauds Senate giving go-ahead for 'fast track' trade powers
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16:21 EDTIBMOn The Fly: Top stock stories for Wednesday
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12:30 EDTIBMOn The Fly: Top stock stories at midday
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09:10 EDTIBMOn The Fly: Pre-market Movers
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05:10 EDTIBMIBM, Box announce global partnership
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