IBM Earnings Top Views But Sales Fall Short – Investor's Business Daily

This post was originally published on this site

https://lh6.googleusercontent.com/proxy/D1xcx5KQd73olIo3zBkTxmGZLUsrIQNcbaZIH8sv31y7-ddcTndcTJEz6toWbGQH72A0OCbquu3yU66cSGHqcegZcfWxWPnUmgNWXShFZfLukW2ojcBVqJaMnMFTdeKy=-w150-h150-c

IBM earnings reported after the market close Tuesday came in above Wall Street estimates but revenue fell short. IBM stock fell in after-hours trading.

X

For the first-quarter, IBM (IBM) reported revenue of $18.2 billion and adjusted earnings of 2.25 per share. Analysts expected revenue of $18.5 billion and earnings of $2.22 a share.

IBM stock lost 1.9%, near 142, during after-hours trading on the stock market today.

IBM said total revenue from its cloud-computing operations for the 12-month period ended March 31 rose 10% to $19.5 billion, from the year-ago period. IBM’s cloud operation as a service reached $11.7 billion over the same period, also up 10% but up 15% when adjusting for currency.

“In the first quarter, our cloud revenue growth accelerated, and we again grew in key, high-value areas in cloud and cognitive software and in consulting,” Ginni Rometty, IBM chairman and chief executive, said in prepared remarks.

Big Bet On Hybrid Cloud Services

IBM placed a big bet on hybrid cloud services when it acquired Red Hat (RHT), an open source, cloud software business, in October. The $34 billion deal consisted of cash and debt. IBM expects the deal to close in the latter half of 2019. A hybrid cloud combines public and private clouds and allows data and applications to be shared between them.

IBM maintained full-year EPS of at least $13.90 and free cash flow expectations of approximately $12 billion. IBM ended the first quarter with $18.1 billion of cash on hand.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

YOU MIGHT ALSO LIKE:

After Hours: These 6 Stocks Are Big Movers On News

Catch The Next Big Winning Stock With MarketSmith

What Makes IBD Unique?

Improve Your Stock-Picking Skills With This Simple 3-Step Routine

IBD Stock Of The Day: How To Find, Track And Buy The Best Stocks

This post was originally published on *this site*