IBM says it will provide full-year expectations during its July 22 earnings call
Overview
US technology firm's preliminary Q2 revenue rose 1% but missed analyst expectations
Preliminary adjusted EPS for Q2 missed analyst expectations
IBM shares tumble 16% in pre-market trading
Company cites Z mainframe shortfall, capex shifts, and cybersecurity concerns for weak results
Result drivers
Mainframe shortfall - Co said weaker-than-expected Z mainframe and associated software sales, especially in Transaction Processing, drove revenue and profit shortfall
Capex shift - Clients shifted capex toward servers, storage, and memory ahead of expected price increases, disrupting typical buying patterns and impacting results
Cybersecurity distractions - Rapidly evolving cybersecurity concerns distracted clients and contributed to delays in closing large deals
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"
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