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Stock Market & Financial Investment News

News Breaks
April 16, 2014
12:30 EDTIBM, LNVGYEarnings 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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October 20, 2014
08:34 EDTIBMIBM lowers FY14 free cash flow view to $12B-$13B
08:32 EDTIBMIBM sees taking workforce rebalancing charge of up to $600M in Q4
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08:20 EDTIBMIBM says some fundamental industry shifts happening faster than planned
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07:21 EDTIBM, LNVGYIBM sees $1.5B pretax gain related to deal with Lenovo Group
IBM (IBM) announced that on October 1 the company and Lenovo (LNVGY) completed the initial closing of the sale of IBM’s industry standard server business to Lenovo. The transition began on October 1 in countries that are part of the initial closing, which included most major markets. The transaction is expected to close later this year in most other countries which have a larger business footprint, with the remaining countries following in early 2015. The transaction price is approximately $2.1B and as consideration, IBM received $1.8B in cash, with the remaining consideration paid in Lenovo stock. IBM expects to recognize a total pre-tax gain on the sale of approximately $1.5B, which does not include associated costs related to transition and performance-based costs. Net of these charges, the gain is approximately $1.0B. Almost all of the gains will be booked in the fourth quarter of 2014, with the remaining portion expected beyond 2014, IBM stated.
07:18 EDTIBMIBM sees FY14 operating EPS down (4%)-(2%) from $16.64 in FY13
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07:16 EDTIBMIBM no longer expects 'at least' $20 operating EPS in 2015
FY15 EPS consensus $19.75. Says will provide view of 2015 in January. Comment from slides for Q3 earnings call.
07:08 EDTIBMIBM sees deal with Globalfoundries closing in 2015
07:08 EDTIBMIBM expects to request additional share repurchase authorization at Oct. meeting
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07:07 EDTIBMIBM reports Q3 Global Services segment revenue down 3% to $13.7B
Revenues from the Software segment were $5.7B. Revenues from continuing operations from the Systems and Technology segment totaled $2.4B. The company’s total gross profit margin from continuing operations was 48.6 percent in the 2014 third-quarter period compared with 49.0 percent in the 2013 third-quarter period. Total operating gross profit margin from continuing operations was 49.2 percent in the 2014 third-quarter compared with 50.1 percent in the 2013 third-quarter period.
07:06 EDTIBMIBM committed to returning value to shareholders through dividends, repurchases
07:05 EDTIBMIBM reports Q3 EPS $3.68, consensus $4.32
Reports Q3 revenue $22.4B, consensus $23.37B. We are disappointed in our performance. We saw a marked slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry. While we did not produce the results we expected to achieve, we again performed well in our strategic growth areas – cloud, data and analytics, security, social and mobile - where we continue to shift our business. We will accelerate this transformation,” said Ginni Rometty, IBM chairman, president and CEO.
06:15 EDTLNVGYLenovo cuts prices for 7- and 8-inch tablets, DigiTimes Research reports
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06:06 EDTIBMIBM sees $4.7B pre-tax charge for Q3 results
IBM will reflect a pre-tax charge of $4.7B in its financial results for Q3, which includes an asset impairment, estimated costs to sell the IBM microelectronics business, and cash consideration to GLOBALFOUNDRIES. Cash consideration of $1.5B is expected to be paid to GLOBALFOUNDRIES by IBM over the next three years. The cash consideration will be adjusted by the amount of working capital which is estimated to be $200M.
06:04 EDTIBMGLOBALFOUNDRIES to acquire IBM microelectronics business
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06:02 EDTIBMGLOBALFOUNDRIES to acquire IBM microelectronics business
October 19, 2014
19:59 EDTIBMIBM to pay Globalfoundries $1.5B to take chip unit, Bloomberg reports
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17:42 EDTIBMIBM to make 'major business announcement'
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October 17, 2014
10:00 EDTIBMOn The Fly: Analyst Initiation Summary
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07:33 EDTIBMIBM reinstated with a Neutral at BofA/Merrill
Target $200.
06:24 EDTLNVGYGlobal notebook shipments estimated at over 45M units, Digitimes Research says
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