International Business Machine Corp. (IBM), the Armonk, New York-based American multinational tech conglomerate operating across 170 countries, had topped analysts’ estimates for quarterly profit and revenue during fiscal first quarter of the year that ended on March 31, buoyed up by a substantial scale of growth on its high profit-margin cloud computing business.
Aside from that, IBM had also quoted saying on its quarterly earnings’ report published late in the day that the century-old American technology company, had witnessed its highest quarterly sales growth in more than two years over the first three months of the year.
On top of that, followed by the reveal of its upbeat quarterly earnings’ report that had beaten Wall St. estimates, shares’ prices of NYSE-listed IBM Corp. jumped 3.15 per cent to $137.31 on post-market trading after wrapping up the day 0.36 per cent down to $133.12 apiece.
More importantly, IBM Corp.’s first-quarter earnings’ report came in at a critical spell, while the company has been working out a spin-off of its businesses into two publicly listed companies.
IBM reports the highest quarterly sales growth in more than two years
Apart from that, according to the Armonk-based tech behemoth’s quarterly earnings’ report published late in the day, IMB Corp.
had witnessed its cloud computing services sky-rocketing as much as by 21 per cent to $6.5 billion in the quarter compared to the same time a year earlier, while the technology conglomerate’s total revenues soared more than 1 per cent to $17.73 billion during January-March quarter, beating an analysts’ estimate of $17.35 billion, data from Refinitiv had revealed.
IBM Corp.’s net income, in tandem, fell to $955 million or $1.06 per share, compared to a net earning of $1.18 billion or $1.31 a share scored at the same time a year earlier, however, excluding items, the New York-based tech giant had posted an earning of $1.77 per share, above Wall St.
estimates of $1.63 per share. Meanwhile, followed by the announcement, IBM CFO (Chief Financial Officer) James Kavanaugh was quoted saying in a post-earnings conference call with the reporters that the tech mogul had been met with a sweeping uplift in cloud spending on retail, travel and manufacturing industries in the United States.