IBM beats earnings but investors yawn

Ginni Rometty somberBusiness Insider/Julie BortIBM CEO Ginni Rometty

IBM just reported its fourth quarter earnings for 2015.

Here are the most important numbers:

EPS: $4.84 vs. $4.81 expected

Revenue: $22.06 billion vs. $22.04 billion expected

That’s a beat across the board. IBM shares are trading roughly flat in after hours.

IBM has reported declining year-over-year revenue for the last 14 consecutive quarters.

During its last earnings call, IBM lowered its guidance for full year 2015 to the range of operating (non-GAAP) EPS of $14.75 to $15.75, from its prior goal of $15.75-$16.50. Analysts were expecting $14.93.

That’s already a big cut from the $20 EPS goal IBM had planned to reach by 2015. IBM CEO Ginny Rometty officially abandoned the plan called “Roadmap 2015” in the third quarter of 2014.

Instead, Rometty has acquired nearly 40 companies during her three years at IBM in order to nurture growth. IBM has been shifting its investment to what it calls “strategic imperatives,” including growth areas like cloud computing, big data, and mobile apps. But Amazon and Microsoft had a head start in those sectors, and IBM is still catching up.

Story developing…

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