IBM's Weak Results Hide Its Growth Potential

At first glance, International Business Machines' (NYSE: IBM) third-quarter results looked disappointing, featuring declining revenue and shrinking earnings per share. But as has often been the case with the giant tech company, one-time items again muddied the picture. And based on conditions in its underlying business, the stock may constitute an interesting investment opportunity.

IBM's revenue declined by 3.9% year over year to $18.0 billion during the third quarter. But excluding the effects of foreign currency and divestitures, the top line fell only 0.6%. Still, the company's fifth consecutive quarter of revenue declines should worry investors, especially since this was the first time that figure included $371 million from IBM's $34 billion Red Hat acquisition. 

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Source Fool.com