Jim Cramer Discusses IBM CEO's Surprise Admission Amid Earnings Miss
On July 14, International Business Machines Corporation (NYSE:IBM) reported preliminary second-quarter earnings that missed analyst expectations. The company guided for $17.2 billion in revenue and $2.93 per share compared to estimates of $17.86 billion and $3.01. IBM CEO Arvind Krishna admitted the firm did not adapt quickly enough as businesses shifted spending toward hardware purchases like memory chips, servers, and storage products. Jim Cramer discussed this 'surprise' on CNBC, highlighting that even a well-liked leader such as Krishna could be caught off guard by market shifts. Following IBM's earnings report, both Citi and Argus cut their price targets for the stock while maintaining Buy ratings. The adjustments reflect revised growth expectations in revenue, margin expansion, and cash flow. Cramer has consistently supported IBM despite its 26% year-to-date decline in share price. He previously expressed cautious optimism about the company's potential but emphasized his preference against parabolic moves.
Tickers: $IBM
Topics: CEO Commentary Earnings Stock Performance