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IBM's Stock Down 9% On News Of Hashicorp Deal And Mixed Earnings
(MENAFN- Baystreet) Navitas Dips on Eve of Shenzhen Conference TikTok Ban Bill Passes Senate, Awaits Biden's Signature Meta Platforms' Stock Falls 13% On Disappointing Guidance Texas Instruments Stock Surges After Earnings AppTech Down on Eve of Planet MicroCap Show Previous Articles Subscribe to Get Small Cap News & Alerts Baystreet Staff - Thursday, April 25, 2024 IBM's Stock Down 9% On News Of HashiCorp Deal And Mixed Earnings Shares of IBM (IBM) are down 9% after the technology giant announced that it is acquiring cloud software maker HashiCorp (HCP) at the same time that it reported mixed earnings.
In a news release, IBM said that it will pay $35 U.S. per share in cash for HashiCorp in a deal valued at $6.4 billion U.S.
The acquisition was announced alongside first-quarter financial results that included a miss on revenue for the period.
Armonk, New York-based IBM announced earnings per share of $1.68 U.S. versus $1.60 U.S. that was forecast among analysts.
Revenue in Q1 totaled $14.46 billion U.S. compared to $14.55 billion U.S. that was expected across Wall Street. The company's sales were up 1.5% from a year ago.
However, the latest results marked IBM's third revenue miss in the last five quarters, sending the stock lower.
Revenue from software sales totaled $5.90 billion U.S. during Q1, up 6% from a year ago but below the $5.96 billion U.S. expected amongst analysts.
IBM's consulting revenue amounted to $5.19 billion, down slightly and just under the $5.20 billion U.S. expected on the Street.
During the quarter, IBM said it provided its 160,000 consultants with artificial intelligence (AI) assistants to boost their productivity.
In terms of the HashiCorp deal, IBM said the acquisition will be accretive to its earnings in the first full year after it closes. The company expects the deal to be finalized by year's end.
HashiCorp is expected to complement Red Hat, which has contributed to IBM's revenue growth since that $34 billion U.S. acquisition was completed in 2019.
IBM today sells Red Hat's version of the Linux operating system for use on public cloud systems.
Before today (April 25), IBM's stock had increased 46% over the last 12 months to trade at $184.10 U.S. per share.
In a news release, IBM said that it will pay $35 U.S. per share in cash for HashiCorp in a deal valued at $6.4 billion U.S.
The acquisition was announced alongside first-quarter financial results that included a miss on revenue for the period.
Armonk, New York-based IBM announced earnings per share of $1.68 U.S. versus $1.60 U.S. that was forecast among analysts.
Revenue in Q1 totaled $14.46 billion U.S. compared to $14.55 billion U.S. that was expected across Wall Street. The company's sales were up 1.5% from a year ago.
However, the latest results marked IBM's third revenue miss in the last five quarters, sending the stock lower.
Revenue from software sales totaled $5.90 billion U.S. during Q1, up 6% from a year ago but below the $5.96 billion U.S. expected amongst analysts.
IBM's consulting revenue amounted to $5.19 billion, down slightly and just under the $5.20 billion U.S. expected on the Street.
During the quarter, IBM said it provided its 160,000 consultants with artificial intelligence (AI) assistants to boost their productivity.
In terms of the HashiCorp deal, IBM said the acquisition will be accretive to its earnings in the first full year after it closes. The company expects the deal to be finalized by year's end.
HashiCorp is expected to complement Red Hat, which has contributed to IBM's revenue growth since that $34 billion U.S. acquisition was completed in 2019.
IBM today sells Red Hat's version of the Linux operating system for use on public cloud systems.
Before today (April 25), IBM's stock had increased 46% over the last 12 months to trade at $184.10 U.S. per share.
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