International Business Machines (IBM) released its earnings after the bell Monday and revealed a beat on both earnings per share and revenue.
IBM reported earnings per share of $2.35 on $18.68 billion in revenue. This beat analyst estimates. According to a consensus estimate the company was expected to post earnings per share of approximately $2.09 on $18.29 billion in revenue.
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International Business Machines beats analyst predictions
In April 2016, IBM announced the acquisition of Truven Health Analytics for $2.6 billion. The move brought 8,500 new clients to the company’s Watson Health portfolio.
This Monday the Cloud Video unit revealed that it would enter into partnerships with Comic-Con, Canadian Broadcasting, AOL and Broadway Video.
Shares in the company have risen this year but analysts remain wary, with Credit Suisse citing internal turmoil at the company. The bank believes that IBM is in decline rather than transition and cites the cloud as an area for concern.
CEO Rometty pleased with progress
However IBM reported that quarterly revenue from strategic imperatives increased 14% year on year. This includes cloud, analytics and engagement.
Revenue from cloud services is up 34% this quarter and reached a total of $10.8 billion over the past 12 months.
“We are pleased with the progress we have made helping our clients apply new cognitive solutions and hybrid cloud platforms,” Ginni Rometty, chairman and CEO of IBM, said in a statement.
IBM upheld its full-year guidance of at least $13.50 per share.
Big Blue closed today’s trading at $152.53 up $0.81 or a modest 0.53% for the day on a bit more than average volume. However, despite beating both earnings per share and revenue numbers in its after the bell reporting, the stock is taking a bit of shellacking at present in after hours trading.
Shares are presently (4:44PM EDT) trading down at $148.50 for a loss of over $4.00 per share or, a surprising, 2.65%.
This almost proves you can’t make everyone happy.