IBM (IBM): IBM reported mixed 4Q22 results that were not good enough to support the stock in the near-term or bad enough to derail Northlake’s bullish long-term thesis. Revenue came in above expectations, which for us is the key component in the bull case. IBM has not shown consistent growth for a long time. The […]
IBM (IBM): IBM reported good results in a tough macro environment, further increasing our confidence in the transformation underway at the company. Revenue and EPS exceeded expectations with strength across all segments of the company. Management raised 2022 revenue guidance and maintained free cash flow guidance. The only real negative in the quarter and outlook […]
IBM (IBM): IBM reported mostly solid 2Q22 results, but the stock fell victim to its strong performance from earlier this year. Ahead of the report, the shares were nearly unchanged against a 20-30% decline for major stock market averages. This strong performance raised expectations for IBM, and a good report with a few small flaws […]
Due to Steve’s travel schedule, we are going to try something new this quarter with our quarterly blog updates on individual stocks held widely in Northlake accounts. Rather than publish a separate commentary on each stock, we are going to produce two or three updates with each containing comments on several stocks. This will result […]
After a misstep last quarter, the turnaround at IBM got back on track with 4Q21 results exceeding expectations. The big upside was in revenue which beat street estimates by several percent. Growth showed up in the right places with software, hybrid cloud, and consulting all strong. Stock Reaction: IBM shares were up almost 6% on […]
After two consecutive quarters of improved results and a positive analyst meeting earlier this month, IBM’s 3Q21 earnings were disappointing. Revenues fell slightly short of estimates, and after adjusting for a favorable tax rate, EPS did as well. Key growth areas like consulting and hybrid cloud performed well, but software, mainframe systems, and soon-to-be spun […]
IBM reported another quarter of encouraging results against our investment thesis highlighted by a return to revenue growth at the best level in three years. Growth came from the right places driven by Red Hat and consulting services related to cloud initiatives. Revenue growth of 3% pales in comparison to the cloud leaders including Amazon, […]
IBM reported a positive surprise in revenue and earnings per share for its 1Q21, an unusual occurrence over the last several years. Revenue of $17.7 billion was about $300 million ahead of consensus and guidance, the first beat on this metric since 2018. Gross margins, another trouble spot of late, also came in ahead of […]
IBM reported disappointing 4Q20 earnings although there were positives that support Northlake’s investment thesis. EPS exceeded expectations, but the upside was due to below-the-line or non-operating items. The culprit in the quarter was revenue weakness. We are not surprised by a revenue shortfall given IBM has a lot of exposure to on-premises enterprise spending in […]
There are no changes to Northlake’s favored themes for December. We remain neutral on growth versus value and continue to favor mid caps. As a result, current client positions following the models in the Russell 1000 Growth (IWF), the Russell 1000 Value (IWD), and the S&P 400 Mid Cap (MDY) will be held for at […]
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