International Business Machines Corp. expects to return to profitability this year after reporting a 4.6% decline in 2020 as corporate clients’ focused on maintaining cash during the coronavirus pandemic.
IBM posted lesser sales every quarter in 2020, scoring less for the challenges ahead for Chief Executive Arvind Krishna, who became in charge during the pandemic. In the latest quarter, returns dropped 6.5% to $20.37 billion, missing analysts’ projections, according to FactSet.
Shares dropped 6.8% in after-hours trading. IBM’s stock ended at $131.65 on Thursday, down 5.4% over the past year. IBM, which had suspended financial projections last year over discouragement regarding the business impact led by the pandemic, said Thursday that it expects returns to grow this year and expects $11 billion to $12 billion in adjusted free cash flow for the year and $12 billion to $13 billion in 2022.
Mr. Krishna stated that IBM is stirring up more risk-taking to drive revenue-and ensuring a higher appetite for failure across the business.