International Business Machines Corp IBM shares are trading lower Tuesday after the company reported financial results and cut its 2022 free cash flow guidance.
IBM said second-quarter revenue increased 9% year-over-year to $15.5 billion, which beat the estimate of $15.25 billion, according to data from Benzinga Pro. The company reported quarterly earnings of $2.31 per share, which beat the estimate of $2.28 per share.
"In the quarter we delivered good revenue performance with balanced growth across our geographies, driven by client demand for our hybrid cloud and AI offerings" said Arvind Krishna, chairman and CEO of IBM.
IBM said it expects full-year revenue growth to be at the high end of its mid-single digit model. The company now expects about $10 billion in consolidated free cash flow, which is down from the previous guidance range of $10 billion to $10.5 billion.
- BMO Capital analyst Keith Bachman maintained IBM with a Market Perform rating and lowered the price target from $152 to $148.
- Morgan Stanley analyst Erik Woodring maintained IBM with an Overweight rating and lowered the price target from $157 to $155.
Related Link: IBM Q2 Earnings Highlights: Revenue And EPS Beat, Cloud Segment Revenue Shows Double-Digit Growth
IBM Price Action: IBM has traded between $146 and $114.56 over a 52-week period.
The stock was down 5.63% at $130.35 at time of publication.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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