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.

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: Apr 19, 2016 02:45 AM

Also Watch

Watch: Firstpost test rides the new Thunderbird 500X in Goa and walks you through the Royal Enfield Garage Cafe
  • Tuesday, April 17, 2018 Varun Dhawan on Shoojit Sircar's October, 5-star reviews and working with Anushka Sharma in Sui Dhaaga
  • Saturday, April 14, 2018 Ambedkar Jayanti: Re-visiting Babasaheb's ideals exposes fake Dalit politics of Rahul Gandhi and Congress
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See