(AOF) – IBM is expected to be in the red after announcing disappointing revenues. In the first quarter, the IT giant recorded a net profit of $1.6 billion, or $1.72 per share compared to a profit of $927 million and $1.01, respectively, a year earlier. Excluding one-off items, earnings per share reached $1.68, 8 cents better than consensus.
“Big Blue” revenue rose 1 percent to $14.46 billion, compared with expectations of $14.53 billion. They are up 3% at constant exchange rates, supported by software: 5%.
This year, the company continues to expect constant currency revenue growth consistent with its single-digit model. At current exchange rates, revenue growth should be slowed by one and a half to two points by exchange rate effects. IBM plans to generate $12 billion in free cash flow.
At the same time, the IT group announced the acquisition of HashiCorp for $35 per share in cash, representing an enterprise value of $6.4 billion.
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