IT hardware and services company IBM Corp beat quarterly revenue expectations on Monday but warned the hit from forex for the year could be about $3.5 billion due to a strong dollar.
A hawkish Federal Reserve and heightened geopolitical tensions have driven gains in the dollar against a basket of currencies over the last year, prompting companies with sizeable international operations, including Microsoft and Salesforce, to temper expectations.
Shares of IBM pared losses and were down 1.3 percent in extended trading.
On the earnings call, Chief Financial Officer James Kavanaugh told analysts both currency headwinds and impact from exiting Russia operations has put pressure on IBM’s near-term results but reiterated the company’s full-year forecast of hitting the upper end of mid-single-digit revenue growth at constant currency….