• About us
  • Donate
  • WADR
  • Contact us
  • Live Stream
Tuesday, April 29, 2025
Loud Silence News
Advertisement
  • Ghana News
    • General News
    • Business
    • Education
    • Opinion
  • US News
    • Business
    • Health
    • Human Interest Stories
    • Politics
    • Education
  • Africa News
    • Business
    • Education
    • Health
    • Politics
  • ShowBiz
    • Ghana ShowBiz
    • US Showbiz
    • African ShowBiz
    • World Showbiz
  • Editorials
    • People
  • World News
    • Politics
    • Business
    • Education
    • Health
  • Sports
    • Ghana Sports
    • World Sports
  • WADR
No Result
View All Result
  • Ghana News
    • General News
    • Business
    • Education
    • Opinion
  • US News
    • Business
    • Health
    • Human Interest Stories
    • Politics
    • Education
  • Africa News
    • Business
    • Education
    • Health
    • Politics
  • ShowBiz
    • Ghana ShowBiz
    • US Showbiz
    • African ShowBiz
    • World Showbiz
  • Editorials
    • People
  • World News
    • Politics
    • Business
    • Education
    • Health
  • Sports
    • Ghana Sports
    • World Sports
  • WADR
No Result
View All Result
Loud Silence News
No Result
View All Result
Home US News US Business

IBM CEO Krishna emphasizes growth, not just EPS, in first analyst call

Loud Silence Staff by Loud Silence Staff
April 21, 2020
in US Business
0
IBM CEO Krishna emphasizes growth, not just EPS, in first analyst call
8
SHARES
43
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

[ad_1]

SVP and Director at IBM Research Arvind Krishna speaks on stage during the 2016 Wired Business Conference on June 16, 2016 in New York City.

Brian Ach | Getty Images

Monday was a big day for IBM.

It was the first time Arvind Krishna, the company’s newly appointed CEO, spoke to analysts, telling them directly about how the company has been faring in the age of coronavirus (hint: not perfectly). And it was the first time an IBM CEO had joined an earnings call since 2014.

Beyond that, though, Krishna delivered a bold proclamation. He said he wants the company to grow, and not just on the bottom line.

“We can talk about which is important, is it growth, or is it only EPS [earnings per share], or is it only liquidity,” Krishna said on Monday’s call.

“Liquidity is essential, and without that, no company is going to survive through the next period. I don’t know how long that period is going to be, so I think our obsession with that is going to serve us well in this period, but what you’re hearing me say is that growth has to be an equal obsession to other metrics that are there if we’re going to go do that.”

The remarks are notable given the way IBM performed under his predecessor, without an economic crisis. In the past five years, according to FactSet, IBM produced adjusted earnings that beat analysts’ estimates every single quarter. But revenue came in ahead of expectations only about half the time. 

Moreover, IBM had a streak of more than five years, from June 2012 through September 2017, where revenue declined on an annualized basis every single quarter. 

Along the way, IBM’s company’s stock price fell 42% under Rometty’s tenure going back to January 2012.

Now Krishna appears to be taking a different view. If things work out as he’d like them to, the company could improve its position in the technology industry, where it has struggled to compete against tech powerhouses like Amazon, Microsoft and Google in cutting-edge areas like cloud computing and artificial intelligence.

Revenue growth could come in part through dealmaking, just as it has at Salesforce and other enterprise technology companies. 

Acquisitions certainly happened in the Rometty years, including Red Hat, which Krishna engineered alongside Rometty. In the first quarter while IBM revenue overall declined 3.4%, Red Hat revenue rose 18% on a normalized basis. Krishna sees IBM continuing to buy companies. It’s just that he might be more willing to buy companies for growth rather than immediate earnings injections.

“It doesn’t have to be accretive on month one, or day one,” he told analysts. “As long as it’s a healthy business, provides us a growth profile and provides us the ability to get sufficient synergy both for IBM and for the property itself, both have to be winners. It cannot just be one otherwise it’s not that attractive.”

It’s not clear how much revenue growth IBM will be able to yield from products its engineers build internally. But it’s cler where he’s trying to focus growth: Krishna repeatedly said on Monday’s call that the most important areas are hybrid cloud (the Red Hat deal will help there) and artificial intelligence. 

The company’s shares dipped about 3% after hours following its earnings report. 

WATCH: New IBM CEO talks Q1 earnings, hybrid cloud and weathering coronavirus pandemic

[ad_2]

This content first appear on cnbc

You might also like

Billionaire Mark Zuckerberg loses $5.9bn in a day as Facebook faces rare outage, whistleblower testimony

Global cases top 3.6 million, Trump says more deaths inevitable

Supreme Court says Justice Ruth Bader Ginsburg underwent treatment for gallbladder condition

Tags: Alphabet Class AAmazon.com IncBreaking News: Technologybusinessbusiness newsEarningsEnterpriseInternational Business Machines CorpMicrosoft CorpOracle CorpSalesforce.com Inctechnology
Previous Post

US Halt to WHO Funding a ‘Tragedy’

Next Post

ANC wants stimulus package to reignite ailing economy

Loud Silence Staff

Loud Silence Staff

Related Posts

US Business

Billionaire Mark Zuckerberg loses $5.9bn in a day as Facebook faces rare outage, whistleblower testimony

by News Reporter
October 5, 2021
Global cases top 3.6 million, Trump says more deaths inevitable
US Business

Global cases top 3.6 million, Trump says more deaths inevitable

by Loud Silence Staff
May 6, 2020
Supreme Court says Justice Ruth Bader Ginsburg underwent treatment for gallbladder condition
US Business

Supreme Court says Justice Ruth Bader Ginsburg underwent treatment for gallbladder condition

by Loud Silence Staff
May 6, 2020
US Business

United Airlines service workers sue over schedule cuts after airline got federal coronavirus aid

by Loud Silence Staff
May 5, 2020
Disney reports quarterly earnings, and TikTok gains more influence
US Business

Disney reports quarterly earnings, and TikTok gains more influence

by Loud Silence Staff
May 5, 2020
Next Post
ANC wants stimulus package to reignite ailing economy

ANC wants stimulus package to reignite ailing economy

Recommended

Ohio Rep. Vitale says God doesn’t approve of face masks and Jewish health director is a ‘globalist’

Ohio Rep. Vitale says God doesn’t approve of face masks and Jewish health director is a ‘globalist’

May 5, 2020
Coronavirus: France’s first known case ‘was in December’

Coronavirus: France’s first known case ‘was in December’

May 4, 2020

Categories

  • African Business
  • African Education
  • African Health
  • African News
  • African Politics
  • African ShowBiz
  • Education
  • Ghana Business
  • Ghana News
  • Ghana ShowBiz
  • Ghana Sports
  • Human Interest Stories
  • News
  • Opinion
  • People
  • ShowBiz
  • Social Trends
  • US Business
  • US Education
  • US Health
  • US News
  • US Politics
  • US Showbiz
  • WADR
  • World Business
  • World News
  • World Politics
  • World Showbiz
  • World Sports

Don't miss it

The Deceptive Life of William Anarfi Sarpong – A Con Artist and Fraudster
Ghana News

Quack Dr. Wask, From Petty Criminal to Gold Fraudster – A Tale of Deception and Danger

March 15, 2025
The Deceptive Life of William Anarfi Sarpong – A Con Artist and Fraudster
Ghana News

The Deceptive Life of William Anarfi Sarpong – A Con Artist and Fraudster

March 14, 2025
The Deceptive Life of William Anarfi Sarpong – A Con Artist and Fraudster
News

The Deceptive Life of William Anarfi Sarpong – A Con Artist and Fraudster

March 14, 2025
NDC unveils campaign team for 2024 General Elections
Ghana News

NDC unveils campaign team for 2024 General Elections

June 19, 2024
A.G Godfred Dame has engaged me at odd hours to implicate Ato Forson – Richard Jakpa
Ghana News

A.G Godfred Dame has engaged me at odd hours to implicate Ato Forson – Richard Jakpa

May 23, 2024
Artiste Profile: Frank Cole aka Zyon Ovkin
Ghana ShowBiz

Artiste Profile: Frank Cole aka Zyon Ovkin

April 20, 2024

About Us

LOGO

Loud Silence Radio & TV Network and is a multi media production company focusing on Ghanaian and African news.

Contact

  • Alexandria, Virginia, USA
  • +1 212-602-9641
  • loudsilenceradio@gmail.com
Facebook Twitter Youtube Linkedin

Download App

google play store

© 2021 Loud Silence Media. All rights reserved.

  • About us
  • Contact us
  • Donate
  • Live Stream
  • Privacy Policy
  • Terms of Use
Menu
  • About us
  • Contact us
  • Donate
  • Live Stream
  • Privacy Policy
  • Terms of Use
No Result
View All Result
  • Ghana News
    • General News
    • Business
    • Education
    • Opinion
  • US News
    • Business
    • Health
    • Human Interest Stories
    • Politics
    • Education
  • Africa News
    • Business
    • Education
    • Health
    • Politics
  • ShowBiz
    • Ghana ShowBiz
    • US Showbiz
    • African ShowBiz
    • World Showbiz
  • Editorials
    • People
  • World News
    • Politics
    • Business
    • Education
    • Health
  • Sports
    • Ghana Sports
    • World Sports
  • WADR
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.