IBM Under SEC Investigation
In international trading today, markets were mixed but largely down. The sole bright spot was Hong Kong’s Hang Seng index, which rose by just 26 points. In Japan, the Nikkei fell by 170 points. Australia’s ASX index was down by 2 points. The picture was largely the same across Europe, with losses prevailing on the day.
CONSOL Energy’s (CNX) Big Earnings MissShares of CONSOL Energy (CNX) fell by a whopping 20% after it missed its earnings target by a huge margin. Losses were expected to be about $0.03 per share, but after the tough quarter the company lost $0.28 per share instead. Investors hurried to unload the stock this morning, and the bleeding never stopped throughout the day.
Of course, the entire Energy sector has taken a hit this quarter, with the fall in the price of oil and natural gas. Things don’t look to be improving anytime soon, as this is forecast to be a mild winter, which will limit the bounce from fuel oil and natural gas that’s usually forthcoming. Still, CONSOL missed their mark by such a wide margin it’s no wonder that investors dropped the stock as soon as they possibly could. The earnings miss represents an over 900% miscalculation in guidance for the quarter.
IBM Under SEC InvestigationNews came to light today that IBM is under SEC investigation for business that it conducted in Ireland. Although details are sparse at the moment, the company acknowledged that the investigation began in August and was ongoing. Although there is no indication of exactly what is currently being investigated, a spokesman for the company did say that it was related to revenue recognition.
In a statement to reporters, a spokesperson for IBM also said "IBM has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue."
Published on Oct 27, 2015By Aaron Phillips