Summary
- IBM saw quarterly revenues dip again due in large part to currency.
- Current CEO Ginny Rometty has failed to turn around the company or produce stock gains.
- The company is still expected to generate EPS growth in 2020 and 2021 prior to the accretive Red Hat deal.
- Investors should embrace stock weakness in order to effect executive changes when the Red Hat deal closes in H2 2019.
International Business Machines (IBM) saw the stock fall again following quarterly results as the market tends to not be pleased with a company that struggles to generate revenue growth. At this point, investors should embrace this weakness to further push executive leadership changes as the tech giant has failed to effectively transition to strategic imperatives under the current CEO.
Image Source: IBM website
Still Struggling
For Q1, IBM reported that revenues declined by 4.7% and only 0.9% when adjusting for currency. Going back to 2012, the company has forced shareholders to watch revenues shrink the majority of the time.
