IBM stock rises as earnings, cloud revenue beat Street view
International Business Machines Corp. shares rose in the extended session Wednesday after the tech giant topped Wall Street earnings estimates for the second quarter and cloud revenue grew.
IBM IBM, -0.32% shares rose 3.9% after hours, following a 0.3% decline to close the regular session at $143.06. In comparison, the Dow Jones Industrial Average DJIA, -0.42% finished down 0.4%, the S&P 500 index SPX, -0.65% closed down 0.7%, and the tech-heavy Nasdaq Composite Index COMP, -0.46% declined 0.5%.
The company reported second-quarter net income of $2.5 billion, or $2.81 a share, compared with $2.4 billion, or $2.61 a share, in the year-ago period. Adjusted earnings were $3.17 a share.
Revenue declined to $19.16 billion from $20 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of $3.08 a share on revenue of $19.17 billion.
“In the second quarter, we continued to grow in the high-value areas of the business, led by a strong performance across our Cloud and Cognitive Software segment,” said Ginni Rometty, IBM chairman, president and chief executive, in a statement.
Cloud and cognitive services revenue rose to $5.65 billion from $5.47 billion in the year-ago period, while analysts expected $5.55 billion.
IBM reiterated it expects full-year adjusted earnings of “at least” $13.90 a share, while analysts expect $13.90.
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