Heres His New Pick Image source: IBM. One thing that complicates IBM’s earnings: The company doesn’t back out one-time items, even from its adjusted earnings numbers. 2016 was chock-full of one-off charges and benefits, and the company expects the first quarter to feature complications, as well. A discrete tax benefit is expected to boost EPS, while other actions are expected to partially offset that gain. Continue Reading Below ADVERTISEMENT IBM has beat analyst expectations for both earnings and revenue for the past five quarters after a long streak of missing on revenue. The first quarter could make it six in a row if IBM posts stronger-than-expected results. read thisLook for more turnaround progress All of IBM’s growth businesses, areas where it’s investing heavily, are lumped together into what the company calls strategic imperatives. These strategic imperatives accounted for 41% of total revenue in 2016, while growing by 13% — an impressive result given the size of IBM. Total revenue still slumped, as the rest of the business suffered declines. But the inflection point where growth in newer businesses begins to outpace declines in older businesses appears to be near.
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