Earnings of technology conglomerate IBM (IBM) rose 3% in the second quarter, as strong cloud revenue lifted the top line. Earnings adjusted for special items increased by 4.8%. Shares of IBM rose 0.95% in the after-hours trading as its outlook remained unchanged.
Net income rose 5.6% to $2.63 per share during the quarter. Excluding one-time items, operating earnings increased to $3.08 per share. First quarter revenues grew 4% year-on-year to $20 billion, continuing the rebound that began two quarters earlier.
The diversified tech giant maintained its outlook for full-year adjusted operating income of at least $13.80 per share and net earnings of at least $11.60 per share. The outlook remained in line with the consensus estimate. The company continues to expect free cash flow of about $12 billion in fiscal 2018.
Driving the overall top-line growth, revenues of the Strategic Imperatives segment rose 15% to $39 billion, with cloud revenue jumping 23% annually.
Segment wise, Cognitive Solutions revenue remained flat, while Global Business Services revenue moved up 2%. Revenue of Technology Services & Cloud Platforms rose 2%, while that of Systems jumped 25%. Meanwhile, Global Financing revenue declined 5% during the quarter.
Cloud computing, analytics, and artificial intelligence remained the main growth areas for IBM that replaced its legacy businesses. Revenue from analytics increased 7%, Mobile revenue rose 5%, and revenue from security jumped 81%.
Among IBM’s rivals in the software business, Oracle (ORCL) reported adjusted earnings of $0.99 per share in the fourth quarter, up 11% compared to the prior-year quarter. Microsoft (MSFT) is scheduled to report its fourth-quarter earnings on July 19.
Shares of IBM ended Wednesday’s regular trading session up 0.72% at $144.52 on the NYSE. The stock had been trading between $137.45 and $171.13 for the past 52 weeks.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,