NEW YORK (TheStreet) -- International Business Machine (IBM) failed to wow investors when it reported earnings on Tuesday after the close. TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, gives his take on the report.
"Outstandingly bad" is how Cramer bluntly described the results. Cash flow was disappointing and revenue declined from a year earlier.
Cramer pointed out an article by TheStreet's Herb Greenberg, Wall Street Tires of IBM's Managed Earnings, which suggested that the company's earnings per share target of $20 by 2015 may not be achievable.
Cramer added that IBM's stock would be down much more if the company wasn't such an aggressive buyer of its shares and if famed investor Warren Buffett hadn't endorsed the company so strongly.
IBM "is not a stock people should own even though the analysts are sticking by it, because I like growth out of technology and IBM has no growth," Cramer said.
-- Written by Bret Kenwell in Petoskey, Mich.