Cantor Fitzgerald's Brian White: If FX Impact Is Taken Out IBM's Sales Have Shown Improvement Over January

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International Business Machines Corp. IBM reported mixed first-quarter earnings on Monday post the market closing. EPS for the company grew 9 percent year-over-year to $2.91, while revenue remained nearly flat $19.6 billion.

 

Brian White from Cantor Fitzgerald, was on CNBC Tuesday to weigh in on IBM’s results.

 

Sales Improved

 

“I think it was a very good quarter,” White said. “If you look at EPS, they gave an EPS upside in the quarter, margins expanded year-over-year and in constant currency sales were flat. So, I think if you back down the FX impact relative to January when they reported last. Sales actually showed a little bit of upside versus the Street.”

 

Cloud: Very Strong

 

On the company’s free cash flow guidance, White said, “So, I think nothing has changed in terms of free cash flow guidance for the year, that’s unchanged. So, I think when you look at a company that’s going through a major transition to the cloud.”


“Some of that is shifting, software and services from traditional areas to more of cloud areas. So, the traditional areas are looking a little softer in the cloud, which was up 75 percent year-over-year, it was actually very strong.”

 

Expectations

 

White was asked about the recent performance of IBM versus previous years. He replied, “When I look at IBM, we had a couple of decent quarters and…the stock rallied into last night’s print, but we have had 3 years of underperformance versus the S&P and in fact we have underperformed the S&P by 77 percent since the end of 2011 and the last two years it’s been the worst performer in the Dow”

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Posted In: CNBCMedia
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