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International Business Machines Corporation (IBM) - free report >>
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International Business Machines Corporation (IBM) - free report >>
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IBM Down 3.5% Despite Earnings Beat, Double-Digit Cloud Revenue Growth
International Business Machine (IBM - Free Report) just released its third quarter fiscal 2016 earnings results, posting non-GAAP earnings of $3.29 and revenue of $19.2 billion. Currently, IBM is a Zacks Rank #4 (Sell), and is down 3.71% to $149.03 in after-hours trading shortly after its earnings report was released.
Beat earnings estimates. The company posted non-GAAP earnings of $3.29, beating the Zacks Consensus Estimate of $3.21 per share. This number excludes 31 cents from non-recurring items.
Beat revenue estimates. The company saw revenue figures of $19.2 billion, surpassing our consensus estimate of $19.011 billion but declining 0.4% year-over-year.
Cloud revenues increased 44% year-over-year to $12.7 billion. The annual run rate for cloud as-a-Service revenue—a subset of total cloud revenue—increased to $7.5 billion from $4.5 billion in the third quarter of 2015.
IBM continues to expect operating (non-GAAP) diluted earnings per share of at least $13.50 for full-year 2016.
Chairman, president and CEO Ginni Rometty: "IBM's third-quarter performance, led by continued double-digit growth in our strategic imperatives, is a testament to our leadership in cognitive solutions and cloud. Our ability to apply deep expertise and breakthrough technology, led by Watson and the IBM Cloud, to massive amounts of data is enabling us to build new markets and transform industries.
Here’s a graph that looks at IBM’s price, consensus, and EPS surprise:
INTL BUS MACH Price, Consensus and EPS Surprise
INTL BUS MACH Price, Consensus and EPS Surprise | INTL BUS MACH Quote
IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. IBM is headquartered in Armonk, New York.
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