International Business Machine Corp (IBM), the Armonk, New York-headquartered multinational technology company, had beaten Wall Street estimates for second-quarter revenues, largely boosted up by a rebound in clients’ spending on its cloud and consulting businesses.
Apart from that, followed by the reveal of its quarterly earnings’ report for fiscal second quarter of 2021 that ended on June 30, shares’ prices of IBM had wrapped up Tuesday’s Wall Street 0.58 per cent lower to $140.03 apiece after rising as much as 4.38 per cent on Monday’s after-market trading.
Meanwhile, referring to a robust reopening of the US economy which had helped more clients digitalize their operations, IBM CFO (Chief Financial Officer) James Kavanaugh said, “With the reopening (of economies) in particular around North America and Western Europe, we’re seeing a nice rebound in travel and transportation, automotive, industrial and consumer sectors overall”.
IBM revenues beat Q2, 2021 estimate on strong cloud growth
According to the Armonk-based American multinational tech conglomerate’s quarterly earnings’ report, sales of IBM’s cloud business grew by 13 per cent to $7 billion in the latest quarter as more companies appeared to be fostering a ‘hybrid’ model, a combined usage of an enterprise’s own data centres alongside leased hardware resources.
Besides, over the first two quarters of the year, IBM had spent a stark total of $3 billion on eight acquisitions, as it was reportedly investing aggressively on hybrid models for data centre businesses. Concomitantly, IBM’s net income fell to $1.33 billion or $1.47 a share, compared to a figure of $1.36 billion or $1.52 per share a year earlier, while the tech tycoon’s total revenues soared 3 per cent to $18.75 billion, beating an analysts’ estimate of $18.29 billion, IBES data from Refinitiv had unveiled.