IBM lowers 2019 earnings guidance after closure of Red Hat purchase

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IBM reduced its profit forecast for the year after factoring in costs related to Red Hat, its biggest acquisition ever.

The company now expects full-year earnings to be lower with Red Hat in the mix, partly because of an adjustment to deferred revenue.lowered its earnings forecast for the year on Friday to take into account the Red Hat acquisition, which closed last month.

The decreased guidance reflects a $2.2 billion purchase-accounting adjustment to record deferred revenue at face value as well as retention payments and the earlier-than-expected ending of IBM's share buyback. IBM now expects at least $12.80 in earnings per share this year, excluding certain items, down from the

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