IBM (NYSE:IBM) is performing better than expected. Although the 12th consecutive decline in profit, the company exceeded market expectations. The stock of the company was up 3.4% to 166 USD per share in the last trading session.
Located in the process of restructuring American corporation International Business Machines (IBM) (NYSE:IBM) a track record twelfth consecutive drop in profit in the first three months of the year.
However, a supplier of IT services managed to significantly surpass market expectations in the first quarter of 2015. In the post-trading shares rose about 5%, transmits Reuters.
Especially visible is the decline in the hardware business of the company, which reaches more than 22 percent.
IBM (NYSE:IBM) already relies enhanced business software security and cloud services that promise higher profits. This strategy seems to have held the first fruits.
IBM (NYSE:IBM) reported earnings per share of the adjusted basis of 2.91 dollars per share. This is 9% more than the same period last year. Forecasts were for earnings of 2.80 dollars per share.
Subject to certain effects, however, profit declined by 5 percent to 2.33 billion. Dollars from 2.38 billion. Dollars. The result is encouraged by division cloud services, where revenue growth of 60%.
Revenues from sales of technology giant fell from 22.5 billion. Dollars last year to 19.6 billion. Dollars during the period. So sales were in line with analysts’ expectations.
In the largest division – technology services, a decline in revenue of almost 11% to 7.89 billion. Dollars. Profit before tax in this division fell by over 18% to 994 million. Dollars. The situation is similar in the services sector, where a decline in revenue of 13% to 4.32 billion. Dollars and more than one-fifth lower profit before tax.
May be Stanley Druckenmiller is right to be worried. The decline in profit continues and IBM is left only with 0% interest rates financial engineering to support its stock price – nothing fundamentally good.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.