In IBM’s second quarter, the company dealt with continued headwinds to its managed infrastructure business because of the option to now have public cloud providers manage workloads, while also benefiting from cloud tailwinds in its software and business services portfolio.
Market volatility and security concerns increased mainframe capacity needs, leading to nearly 50% year-over-year growth in the seventh quarter since the z15 model’s launch.
But it's racking up significant operating losses as it does so.
IBM reported fourth-quarter results that beat CapIQ earnings consensus expectations--but top line performance weighed on overall results, as the company’s revenue came behind CapIQ consensus estimates. We maintain our fair value estimate of $125 per share for the narrow-moat name.
IBM continued to refrain from publishing an outlook for the quarter or full year, but we expect the final quarter will see strong sequential growth due to IBM’s seasonality despite another expected quarter of annual declines. We’ve also increased our expectations for the year, leading us to raise our fair value estimate for the narrow-moat name to $125 per share from $120.
The cloud transition brings too much uncertainty.
The narrow-moat company claims this will help its remaining business focus on its hybrid cloud solutions.
We are maintaining our fair value estimate for the company until we get further details.
The company's ability to retain customers causes us to upgrade our rating.
We think Microsoft and Twitter are better fits for TikTok.
2020 will be tough, but margins are set to expand.
Intuit maintains its wide moat thanks to subscription transition and connected products.
Fourth-quarter revenue was slightly below our expectations though EPS was in line with our forecasts.
The IT services company has a large, dedicated customer base.
This IT services company has a moaty combination of intangible assets and versatile expertise.
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