IBM's revenue beats Street as cloud push begins to pay off | Reuters

International Business Machines Corp's ( IBM.N ) quarterly revenue beat analysts' estimates, as the company's shift to high-growth areas such as cloud-based services begins to yield results. Under Chief Executive Ginni Rometty, IBM has been moving towards areas such as cloud-based services, security software and data analytics, while trimming its traditional hardware business by exiting low-margin businesses

Reuters April 19, 2016 02:45:12 IST
IBM's revenue beats Street as cloud push begins to pay off  
| Reuters

IBMs revenue beats Street as cloud push begins to pay off  
 Reuters

International Business Machines Corp's (IBM.N) quarterly revenue beat analysts' estimates, as the company's shift to high-growth areas such as cloud-based services begins to yield results.

Under Chief Executive Ginni Rometty, IBM has been moving towards areas such as cloud-based services, security software and data analytics, while trimming its traditional hardware business by exiting low-margin businesses.

The company's revenue fell 4.6 percent to $18.68 billion in the first quarter ended March 31, but beat analysts' average estimate of $18.29 billion.

The company posted its 16th straight quarter of revenue decline.

Revenue from "strategic imperatives", which include cloud and mobile computing, data analytics, social and security software, rose about 14 percent in the first quarter.

Cloud revenue increased 34 percent.

Excluding items, IBM earned $2.35 per share, beating the average analyst estimate of $2.09.

The company maintained its full-year adjusted earnings guidance of at least $13.50 per share.

Up to Monday's close, IBM's shares had risen 10.83 percent this year, compared with the 2.46 percent gain in the S&P 500 index .SPX.

(Reporting by Narottam Medhora in Bengaluru; Editing by Sriraj Kalluvila)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Kamala Harris to 'reinforce' India-US strategic partnership in meeet with Narendra Modi: White House
World

Kamala Harris to 'reinforce' India-US strategic partnership in meeet with Narendra Modi: White House

Since taking office, US vice president Kamala Harris has met with or spoken to over thirty world leaders, promoting US interests on issues ranging from global health to climate change to cyber threats

Australia cuts French submarine deal for US nuclear fleet; Scott Morrison cites 'changed strategic environment' as reason
World

Australia cuts French submarine deal for US nuclear fleet; Scott Morrison cites 'changed strategic environment' as reason

Australia's submarine upgrade was a response to China’s takeover of the South China Sea, aggressive bullying of Australia and intimidation of Japan and Taiwan, said Peter Jennings.

COVID deaths in US climb to more than 1,900 a day for the first time since March
World

COVID deaths in US climb to more than 1,900 a day for the first time since March

Health experts say the vast majority of the hospitalised and dead have been unvaccinated