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Unremarkable Results From IBM

We'd recommend investors wait for a larger discount to our fair value estimate before diving into this stock.

Andrew Lange Oct 18, 2016

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International Business Machines Corp

For the quarter, reported revenue was flat year over year at $19.2 billion (fell 1% in constant currency). The Cognitive Solutions segment was again IBM’s standout business with analytics software driving the result. Similar to last quarter, the Systems segment was notably weak with an ebb in the z Systems’ product lifecycle. Additionally, consulting was down, which we view as an overarching issue for the IT services industry given clients’ hesitation about discretionary spending in the near term.

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About the Author

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Andrew Lange

Equity Analyst

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Andrew Lange is an equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers application software and IT services companies.

Lange joined Morningstar in 2007 as an associate equity analyst based in Auckland, New Zealand before moving to the Chicago office in 2012.

Lange holds bachelor’s degrees in economics and finance from the University of Otago in New Zealand.

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