The comps for the US dollar in 1Q 2016 are flat compared to 1Q 2015. Currency hasn't been kind to IBM or most other international US firms in 2015. The currency headwinds have subsided so IBM should fare better going forward. Despite hedging major currencies the effect of the strong dollar has hurt IBM's top line 5% in 2015.
Pass the bong please.
iX is a services business and as such is not a high margin revenue source....more like their GBS unit.
The market gives IBM a PE of 9 today. Suggesting iX will drive it to 22 is stuff of dreams if you are long.
IBM will ride their free cash flow story and associated dividend increases to prop up their market cap.