IBM stock sinks as strong dollar and loss of business in Russia hit cash-flow forecast
IBMfell Tuesday as a strong US dollar and the loss of the Russian market dented cash-flow projections.
- Shares were lower despite the company beating sales growth estimates.
Shares dropped more than 6% to $128.64 shortly after the opening bell. The company beat analysts estimates for sales growth in its second-quarter earnings report, and it remained adamant that demand strength hasn't faltered.
But the company conducts more than half of its business overseas, making the exit from Russia especially painful amid an already tumultuous period for
IBM exceeded Wall Street expectations on sales in the quarter, posting $15.5 billion against a forecast of 15.2 billion according to Bloomberg. The company also outperformed on earnings-per-share at $2.31 compared to an expected $2.27.
But the company said its free cash-flow forecast would register closer to $10 billion, a from the previously estimated range of $10 billion-$10.5 billion. IBM swiftly suspended operations in Russia in March once Western sanctions were imposed on the Kremlin in response to the country's invasion of Ukraine. IBM added that it expected current exchange rates to drag down its full-year force cast by six percentage points.
IBM chief executive
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