* Recast to conform with 2019 presentation.Capital Expenditures, net of payments & proceedsOperating right-of-use assets, net*Free cash flow guidance is derived using an estimate of profit, working capital and operational cash outflows. IBM projected 2019 free cash flow of about $12 billion, the same range it set for 2018, while Wall Street on average expects $12.67 billion. IBM's shares traded at over $125 per share, and its market capitalization was valued at over US$113.9 billion in September 2018.
The company views Global Financing receivables as a profit-generating investment, which it seeks to maximize and therefore it is not considered when formulating guidance for free cash flow. It also declared that no dividend would be paid to its parent company for the 2019 financial year. IBM’s total revenue fell 5.4% to $18.12 billion, but came in above analysts’ estimates of $17.72 billion, according to IBES data from Refinitiv. Find detailed stats on IBM revenue on Craft.
The company suspended its share repurchase program on July 9.Property, plant and equipment, netYear-to-date results reflect the impact of items related to the Red Hat acquisition closed in July 2019. Operating (non-GAAP) diluted earnings per share exclude $2.22 per share of charges for: amortization of purchased intangible assets and other acquisition-related charges, including pre-closing charges, such as financing costs, associated with the Red Hat acquisition; retirement-related charges; and tax reform enactment impacts.Marketable Securities / Other Investments, netExcept for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. On a stand-alone basis, Red Hat grew its revenue by … IBM’s free cash flow was $1.8 billion. IBM should be able to muster some revenue growth in 2020, thanks to Red Hat and the new mainframe. While Western Europe and Asia Pacific showed a pickup in client spending during June, U.S. and Latin America customers pulled back as the pandemic impact got worse, Kavanaugh said.Revenue from the cloud business, previously headed by Krishna, rose 30% to $6.3 billion in the second quarter.IBM’s total revenue fell 5.4% to $18.12 billion, but came in above analysts’ estimates of $17.72 billion, according to IBES data from Refinitiv.
Strong Performance by Red Hat Accelerates Cloud Revenue Growth Highlights.
Sales in the unit fell 7% to $3.9 billion.The company’s shares rose 5% in after-hours trading.Excluding items, the company earned $2.18 per share, above estimates of $2.07.IBM has jettisoned some of its legacy business to focus on the high-margin cloud computing business, an area that has seen a lot of action in recent years as companies ramp up their digital shift to boost efficiency. Revenues for the nine-month period ended September 30, 2019 totaled $55.4 billion, a decrease of 4 percent year to year (down 0.7 percent adjusting for divested businesses and currency) compared with $57.8 billion for the first nine months of 2018.
34 on the 2018 Fortune 500 rankings of the largest United States corporations by total revenue. Consolidated net income was $5.8 billion, down 15 percent year to year. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; the company’s failure to meet growth and productivity objectives; a failure of the company’s innovation initiatives; damage to the company’s reputation; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and data privacy considerations; fluctuations in financial results, impact of local legal, economic, political and health conditions; adverse effects from environmental matters, tax matters and the company’s pension plans; ineffective internal controls; the company’s use of accounting estimates; the company’s ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product quality issues; impacts of business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels and ecosystems; the company’s ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities, and higher debt levels; legal proceedings and investigatory risks; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10‑Qs, Form 10‑K and in the company’s other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference.