The Most Important Takeaway in IBM's Earnings Miss

Are IBM's (NYSE: IBM  ) glory days over? Fool contributor Tim Beyers looks at Big Blue's troubling third-quarter earnings miss in the following video.

Revenue fell about $1 billion short of what Wall Street was expecting, overshadowing a modest $0.03 beat on the bottom line. For her part, CEO Ginni Rometty told analysts that IBM is working on improving "execution" in growth markets and elements of the hardware business that are underperforming. At least she's focused on the right areas, Tim says.

Systems and technology revenue fell 17% year over year, which suggests IBM is having a much tougher time selling servers and infrastructure to large clients. Hardly surprising with the wholesale shift to cloud computing that we've seen in recent years, Tim argues.

Are you buying IBM at current prices? Selling? Please watch the video to get Tim's full take and then leave a comment to let us know where you stand.

The next Big Blue, not like the first
IBM used to be a stock that you could buy to hold forever. Those days appear to be coming to a close. What to do? Take a cue from Warren Buffett, who made has fortune betting big on a handful of his best ideas and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 21, 2013, at 9:51 PM, PaulTheJester wrote:

    What earnings miss? IBM missed consensus on revenue by 5%, but actually beat on earnings. This whole article is inappropriately titled. Looks a lot like sensationalist journalism to me

Add your comment.

DocumentId: 2692356, ~/Articles/ArticleHandler.aspx, 4/20/2014 2:59:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement