168.42 -0.05 (-0.03%)
After hours: 4:02PM EDT
|Bid||168.61 x 1100|
|Ask||168.67 x 1000|
|Day's Range||168.25 - 170.65|
|52 Week Range||120.89 - 171.36|
|Beta (3Y Monthly)||1.45|
|PE Ratio (TTM)||94.88|
|Earnings Date||Jul 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||157.00|
(Bloomberg) -- International Business Machines Corp. reported earnings that topped analysts’ estimates in the fiscal second quarter as investors look to the Red Hat acquisition to fuel future growth in cloud computing.Earnings excluding some costs were $3.17 a share in the three months ending June 30, higher than the $3.08 average Wall Street estimate. For the full fiscal year, IBM stuck to a forecast of at least $13.90 a share. The shares jumped 2.7 percent in extended trading.Analysts and investors will be tuning in to the conference call hoping to glean any details on the impact of IBM’s $34 billion acquisition of open-source software provider Red Hat. After lagging in the cloud market for more than a decade, IBM is pegging its future to a hybrid cloud strategy, that will allow it to offer services on both private and rival public clouds.Chief Executive Officer Ginni Rometty paid a rich premium for Red Hat in order to help the 108-year-old company catch up with market leaders Amazon.com Inc. and Microsoft Corp. The deal officially closed last week, so Red Hat’s contribution hasn’t shown up in IBM’s balance sheet yet. IBM said it will share further details at its annual investor briefing in early August.Rometty has touted the Red Hat deal, which was announced in October, as a “game changer” for IBM, claiming it will reset the entire cloud landscape. IBM has estimated only 20 percent of enterprise applications have made the shift to cloud so far and Rometty believes the company is in prime position to conquer the remaining market. By 2022, research firm Gartner Inc. predicts that about 75% of all databases will be migrated to a cloud platform.This quarter’s results are significant because they represent the last clean read of IBM’s trajectory before the integration of Red Hat, Sanford C. Bernstein analysts Toni Sacconaghi and Corry Wang wrote in a note before the results were released.Revenue fell 4.2 percent to $19.2 billion in the quarter, slightly beating the average analyst estimate for $19.14 billion. It was the fourth consecutive quarter of revenue declines for the Armonk, New York-based company.Big Blue has reported shrinking revenue growth since 2012. There was a modest and temporary reprieve in early 2018, but the slight uptick in sales stemmed from its legacy mainframe computers, rather than newer technologies like artificial intelligence, and cloud computing. In the second quarter, IBM reported revenue growth of 3.2% in cloud and cognitive solutions, stronger than in the previous quarter.IBM’s lackluster sales are due to a cannibalization of its legacy technology and data centers, Wedbush Securities Inc. analyst Moshe Katri said in an interview before the results were released. While the company has made significant strides toward new technologies like cloud computing, these services are capital and labor light, Katri said. “It’s time to grow that business and make it really count for overall top-line growth,” he said.Revenue in the global technology services unit, which includes cloud infrastructure and technology support, was $6.8 billion, down 6.7%, from a year earlier. The division shrank by the same amount in the previous quarter.The drop is the result of IBM ending unprofitable third party businesses, Chief Financial Officer Jim Kavanaugh said. "We will see improvements of those numbers as we get into the second half." Technology services is IBM’s biggest business unit, pulling in almost 40% of total sales.The future of IBM is hybrid cloud, said Ian Campbell, chief executive officer of Nucleus Research. “But the biggest challenge is they are very late to the cloud party,” he said. Amazon Web Services and Microsoft Azure have dominated the public cloud space for years and IBM, once a tech titan, is considered small-fry in comparison. “Cloud is the make or break for IBM, but nobody even knows they’re there," Campbell said.On Tuesday, IBM announced that AT&T Inc. would be shifting its internal software applications to the IBM cloud in a multi-year agreement. This is mutually beneficial for both companies, Campbell said. “But it feels like two B-list celebrities announcing an engagement in the hopes of becoming an A-lister,” he added. “This is not going to move the needle."To contact the reporter on this story: Olivia Carville in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Molly Schuetz, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Gartner, Inc. , the world’s leading research and advisory company, will report its financial results for second quarter 2019 before the market opens on Tuesday, July 30, 2019.
The PC market has been pretty gloomy of late, but global shipments went up by at least 1.5 percent after two down quarters, according to Gartner and IDC. The growth was driven in part by the latest Windows 10 refresh and an easing of the Intel CPU shortage, which has adversely affected PC sales for the last 18 months. IDC and Gartner count shipments slightly differently, but IDC saw "high single-digit" US growth and Gartner saw a slight sales decline stateside.
(Bloomberg) -- Worldwide shipments of personal computers increased 1.5% in the second quarter, fueled by businesses upgrading to the latest Windows software from Microsoft Corp. China-based Lenovo Group Ltd. held the No. 1 spot over U.S. rival HP Inc. amid a trade war between the two countries.PC shipments increased to 63 million units in the period ended June 30 from 62 million in the quarter a year earlier, researcher Gartner Inc. said Thursday in a report. Robust corporate demand offset a decline in notebook shipments, Gartner said. Lenovo shipped almost 16% more PCs year-over-year, giving the company a quarter of the global market.Industry research firm IDC estimated PC shipments climbed 4.7% in the most recent period, with vendors putting out 65 million devices worldwide."The threat of increased tariffs led some PC makers to ship a surplus of desktops and notebooks, thereby artificially propping up the PC market during the second quarter," said Jitesh Ubrani, a research manager at IDC.Computer makers have struggled to navigate global trade tensions. They already operate with low profit margins, and many of them have shuffled their supply chains in response to U.S. tariffs on some components. Dell Technologies Inc. and HP are reportedly considering moving 30% of their notebook production out of China.Dell came in third place in the global PC race, with 17% of the market after HP’s 22%. Apple Inc.’s PC shipments narrowly declined in the most recent period, and the company held the fourth spot with about 6% of the market.(Updates with estimates from IDC in third paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...
According to new research from Gartner, Inc., U.S. insurance brands are decreasing investment across desktop sites, digital marketing and social media, and prioritizing mobile, but are falling behind in providing a more holistic digital experience for customers, despite their growing willingness to provide data and shop online. The second annual Gartner L2 Digital IQ Index: Insurance U.S. report ranks the digital performance of 54 brands operating in the U.S. market. “U.S. insurance brands reached the mobile tipping point in 2019, with an average of 52% of total traffic to brand sites taking place on mobile devices,” said Elizabeth Elder, Principal, Financial Services at Gartner.
Spirits brands continue to underinvest in search despite the crucial role it plays for consumers researching and buying products, contributing to overall poor performance in digital marketing for most brands, according to Gartner, Inc. The inaugural Gartner L2 Digital IQ Index: Spirits U.S. 2019 ranks the digital performance of 69 spirits brands operating in the U.S. market.
To successfully recruit and hire candidates in today’s digital era, organizations must redefine the role of the hiring manager to be decisive, according to Gartner, Inc. Yet, more than three-quarters of hiring managers do not act decisively. Gartner says the characteristics of decisive hiring managers include focusing on prioritizing future talent needs, broadening the candidate funnel, and sharing hiring decisions with experts across the organization. “In the past, hiring managers knew what their hiring needs were, and they were able to sit back and wait for recruiting to deliver a shortlist, before making a straightforward final decision,” said Lauren Smith, vice president in the Gartner HR practice.
Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback […]
If you asked the average person on the street what Robotic Process Automationis, most probably wouldn't have a clue
(Bloomberg) -- Walmart Inc. came to dominate retailing through its mastery of logistics—the complicated choreography of getting goods from farm or factory to the consumer. But even the world’s biggest store doesn’t make money selling its wares online in the U.S., largely due to runaway shipping costs. So Walmart is turning to robots.On a drizzly morning earlier this month, Walmart’s U.S. chief Greg Foran led reporters to a curbside package pickup kiosk outside its supercenter in Rogers, Arkansas. Idling there were three Ford delivery vans outfitted with self-driving technology developed by a Gatik, a Silicon Valley startup charged with a trial run aimed at cutting Walmart’s middle-mile shipping costs in half. Going driverless in pursuit of profit is a “no-brainer,” Foran said.As the buzz about human-carting robo-taxis starts to short-circuit, an unheralded segment of the driverless future is taking shape and showing promise: goods-moving robo-vans. Rather than serving up hot pizza pies or deploying headless robots to carry groceries to the doorstep, robo-vans travel on fixed routes from warehouse to warehouse or to a smaller pickup point, transporting packages to get them closer, but not all the way, to consumers.This may be the least glamorous part of the driverless delivery business, but the market for these monotonous “middle miles” could reach $1 trillion and may provide the fastest path to prosperity, analysts say.“This area has the least number of obstacles and the most certain return on invested capital in the near term,” said Mike Ramsey, an analyst with consultant Gartner Inc. “If you’re looking to start a business where you can actually generate revenue, this has fewer barriers than the taxi market.”Driving the demand is the boom in online shopping that has helped cause a severe shortage of truck drivers that tops 60,000 unfilled long-haul positions, according the American Trucking Associations. That has sent costs soaring for a job that is among the most dangerous due to the risk of wrecks and long periods spent on the road.Related: `Smokey and the Bandit' Charm Fades as Trucking Hiring Lags“This middle mile is the most expensive part of the whole supply chain; it’s a huge pain point,” said Gautam Narang, CEO of Gatik, which is attempting to automate Walmart’s “hub and spoke” warehouse system. “This fills a big gap in the market.”From a technological standpoint, business-to-business, or B2B, delivery is the straightforward counterpoint to the complexities of autonomous ride-hailing and driverless delivery directly to consumers, known as B2C or last-mile. Robo-vans like those being put to the test at Walmart follow fixed routes over and over, reducing the chance of mishaps and increasing their time in service generating revenue. Many of these routes are already established using human drivers today, so there’s little need to map new paths and create infrastructure to load and receive the goods.Related: Robot Rides Are Going to Deliver Pizza and Parcels Before PeopleFord Motor Co., testing many forms of driverless delivery, calls these repeatable routes “milk runs,” a throwback term to the days of household dairy delivery.“Anything on driverless delivery that is a milk run is a good application for autonomy,” said Sherif Marakby, chief executive officer of Ford’s autonomous vehicles unit. “B2C is a complex implementation for autonomy that will come with time, but B2B just makes it easier because you get volume and you can be more predictable.”The case for robots ferrying packages before people is becoming more compelling as robo-taxis struggle to gain traction. Consumers have grown wary of giving up the wheel, especially after a pedestrian was killed last year by an autonomous Uber Technologies Inc. test car. Waymo, Alphabet Inc.’s driverless unit, initiated limited automated ride-hailing in suburban Phoenix late last year with human “safety drivers” on board. General Motors Co. no longer says it will debut a similar service this year. Instead, CEO Mary Barra now says the rollout will be “gated by safety.”QuicktakeWhen the Driverless Cars Arrive, Will You Climb In?: QuickTakeDriverless delivery also has another big advantage over robo-taxis: no demanding human passengers. “People have more emotions than boxes,” Ford’s Marakby said.Meanwhile, driverless delivery is already hitting the road. Swedish startup Einride recently began low-speed robo-deliveries on public roads in its home country. It has signed up several Fortune 500 clients, like tire-maker Michelin, plus logistics service provider DB Schenker and German grocer Lidl.Looking like a Star Wars Imperial troop transport on wheels, Einride’s T-Pod trucks are 60% cheaper to build because they lack a passenger compartment. If they get into a jam, they can be remote controlled by humans from a command center. One human monitors the remote controls for 10 trucks. The T-Pods operate in self-driving mode 95% of the time, according to CEO and founder Robert Falck.Stuffed with payload and no human driver, a T-Pod can operate around the clock and cut shipping costs in half. That’s why Falck says his company is already profitable, though he declines to give specifics.“There are solid economics behind this and that’s also what the customer realizes,” Falck said. “If you break down the numbers, it’s the best business case out there.”TuSimple, a San Diego startup valued at $1.1 billion, leads a pack of tech outfits seeking to automate long-haul trucking. The company has a fleet of 50 robot Peterbilt and Navistar trucks that have been transporting commercial loads in Arizona for a year. And while it isn’t profitable yet, it expects to book revenue of more than $1 million a month in the second half of the year.“If you break down the numbers, it’s the best business case out there.”In the final two weeks of May, its self-driving big rigs—equipped with cameras that can see more than a half-mile down the road—completed 10 test runs for the U.S. Postal Service of an arduous 1,000-mile stretch from Phoenix to Dallas. Over Memorial Day weekend, the trucks faced howling crosswinds and “mud rain,” a blinding combination of dust, wind and rain. And yet the robo-rigs consistently beat human-driven trucks to the mail depot by as much as two hours. “We were approaching the edge of our operational design domain,” said Chuck Price, TuSimple’s chief product officer. “But we were able to demonstrate that we can do it much faster, with high consistency and high reliability. So bottom line, it’s more efficient.”By next year, TuSimple says it will pull the safety driver and engineer it currently has babysitting its rigs and go fully driverless—something no robo-taxi has committed to yet. By 2023 or 2024, the company plans to have “commercially ready” robo-rigs rolling out of a factory of a major truck maker.That kind of confidence is hard to come by these days among the purveyors of robo-taxis, still struggling to figure out how to navigate the pedestrians, cyclists and unpredictable traffic of chaotic urban environments. Increasingly, the call of the open road and the mundane middle miles between warehouses is proving to be the clearest path to the autonomous future. That’s why big players like Waymo and Tesla Inc.—still working on driverless people haulers—are also developing robo-rigs.“There’s absolutely a market for this sort of thing,” said Sam Abuelsamid, an analyst with Navigant Research. “People don’t really care much about what goes on behind the scenes to get them the products they want. But the value of all the goods being moved is far more than ride-hailing applications.”To contact the authors of this story: Keith Naughton in Southfield at firstname.lastname@example.orgMatthew Boyle in New York at email@example.comTo contact the editor responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
New Research Reveals More Effective Approaches to Three Common Cost-Cutting Tactics in Sales
“We are still several years away from creating autonomous virtual customers that can function with minimal human intervention,” said Tiffany Fountain, vice president and team manager at Gartner. “However, existing capabilities suggest virtual customers will become a greater presence in purchase and service activities.
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose...
Experts Discuss Key Issues Facing CFOs at Gartner CFO & Finance Executive Conference, June 10-11, in Washington D.C. Most organizations will fail to realize the full value of new financial application purchases because they are not accounting for digital capabilities that they will require in the future, according to Gartner, Inc. Gartner experts at the Gartner CFO & Finance Executive Conference discussed key drivers of financial application buying behavior and the associated challenges of maximizing returns on new technology investments, as predictive analytics, artificial intelligence (AI) and machine learning capabilities will increasingly shape the needs of finance departments in the future.
While compensation remains a top driver to attract and retain talent in the U.S., employees only expect about a 10% salary increase to switch employers, while companies are offering average compensation increases around 15%, according to a recent survey by Gartner, Inc. The latest data from Gartner’s 1Q19 Global Talent Monitor shows that while many U.S. employers continue to extend lucrative compensation offers to persuade workers to switch companies, the premiums to attract talent might not be as high as employers think. “Not only are U.S. employers often paying too much to new workers, but once tenured employees discover discrepancies between their salaries and those of new colleagues, they may be more inclined to look for another position elsewhere,” said Brian Kropp, group vice president in the Gartner HR practice.
Experts Discuss Key Issues Facing CFOs at Gartner CFO & Finance Executive Conference, June 10-11, in Washington D.C. Conflicting signals on the economy and related uncertainty should be looked upon by CFOs as an opportunity to accelerate growth and innovation strategies, according to Gartner, Inc. During the opening keynote at the Gartner CFO & Finance Executive Conference today, Gartner experts highlighted the key differences between firms that use uncertainty to accelerate business performance and those that stall, and the specific behaviors of CFOs that allow their firms to accelerate during times of economic and industry uncertainty.