Credit: Shutterstock photoThe big blue, IBM ( IBM ) is set to report its Q2 2016 earnings on July 18th, 2016. In Q1 2016, its revenues declined by 2% in constant currency (4.6% as reported) to $18.68 billion due to declining revenue from middleware sales and the business services segment. However, new strategic initiatives - such as the Cloud, analytics, mobile computing, social media and security services - have helped the company to shore up its services revenues. We expect this trend has continued in Q2, and strategic initiatives will continue to post growth. Additionally, for Q2 2016, we expect that the shift to cloud boosted its infrastructure services revenues. However, the server hardware business is expected to suffer as Z-system servers are in late stage of the product cycle, and the storage business will post decline due to the secular decline in the industry. In Q2 2016, Trefis expects the company will continue to post a decline in revenues. Trefis estimates are as follows:
Have more questions about IBM? See the links below.
- What's IBM's Revenue And Earnings Breakdown?
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- Why Did IBM's Software Revenue Decline In 2015?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for IBM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
