Yesterday, the first day of the week for being Monday was a big day for the company- IBM as the company’s new CEO – Arvind Krishna was seen addressing the analysts. Recently, this man has replaced Ginni Rometty where the revenues of the company was in a bad shape. So, with lots of ponder and brainstorming, Arvind Krishna was appointed as the successor of the lady. While talking on day one, he is not keen on keeping the growth on the top priority than the earnings. While talking to the analysts, he confirmed that despite the outbreak of the COVID 19, the company seems to be doing fair in the market. And this is the first time when the company has earned that big ever since it did in the year 2014.
Apart from announcing the company’s earnings, the new CEO Arvind Krishna seemed to take up the bold statement claiming that he wants his company to grow and earn rather than staying at the bottom line. While speaking, he added that they often spoke about the growth of the Earnings per share (EPS) or about liquidity, but he then said he intends to speak more than this. Earlier, the new CEO had talked on the daring proclamation wherein he clearly said that he wants his company to develop rather than staying at the underside line. He said let’s not talk about the earning or growth only. Taking his discussion further he said that liquidity is critical and without having it no company is going to outlive by the interval.
Arvind Krishna added saying that he does not know how the interval would go but he feels that their obsession and passion to perform would help the company to do well in this interval. He added saying that efforts with commitment at different metrics will help the company grow. The remarks by the new CEO have been notable and were never heard before from his predecessors while the company witnessed the financial disaster earlier. The past five years, the company was not able to keep par with the FactSet and IBM has only produced some adjusted amount of earnings which can beat the estimates of the analysts in every other quarter. But the income one can get would extend the expectations completely about half the time.
Also, IBM had a great streak that seemed to be greater than the previous five years since June 2012 to September 2017 when the income of the company seemed to decline on the yearly basis one quarter to the other. The inventory value of IBM was seen falling 42 percent below the tenure of Rometty which is seen going again up to Jan 2012. Now, the new CEO seems to be leading the company in a unique way. It offers too much work which he had liked the company to pursue, while the corporate would boost up its place in the area of business expertise, which was tough to compete in opposition for teaching powerhouses including Google, Microsoft and Amazon in the cutting edge areas like synthetic intelligence and cloud computing.