On Friday, Pfizer Inc. (PFE) was stable with a slight jump of +0.19% to $36.55. According to a spokesperson for the EU executive cited by Reuters, the European Commission will seek an explanation from the US firm regarding delays in the supply of the Covid-19 vaccine. The spokesperson said that we will call for clarity. Pfizer and the Commission had earlier confirmed that the supply of doses would not be further slowed down. Member States are anxious about a temporary decline in the production of Pfizer, which they however plan to raise afterward. Judicial intervention is being contemplated by Italy.
As it registered depressed results in the fourth quarter of 2020, International Business Machines Corporation (IBM) dropped -9.91 percent to $118.61. Net profit dropped for the 7th straight year over the whole of last year, and sales dropped 8 times over the past 9 years. To refocus on the cloud, this is justified by the announcement last fall of a separation into two agencies of the American Information services giant. In the fourth quarter, net income fell -63 percent from $4.11 per share in the same period of 2019 to $1.36 billion, or $1.51 per share. The EPS hit $2.07 after changes, including restructuring costs, compared with $4.79 a year ago. From $21.78 billion in 2019, revenue dropped 6.5 percent to $20.37 billion. For the past 34 quarters, the group’s profits have already fallen 30 times. Analysts had predicted $1.81 adjusted EPS and $20.7 billion in revenue.
Adjusted EPS declined to $8.67 for the full year 2020 from $12.81 in 2019, while revenues were $73.62 billion compared to $77.15 billion in 2019. Thanks in part to the purchase of Red Hat, investors had hoped in early 2020 that the company would be able to produce an adjusted EPS of $13.30 on sales of $79.4 billion, but the coronavirus outbreak swept aside those estimates. In 2021, with the expected “spinoff” of the infrastructure maintenance outsourcing division, “Big Blue” will undergo voluntary weight loss treatment. With the arrival of Arvind Krishna in April 2020, Red Hat’s commitment and the change of CEO should help the company to better position itself in the current sector, the ‘cloud’ and, in particular, hybrid cloud infrastructures, as well as artificial intelligence.