IBM beats revenue estimates, EPS
July 17th, 2014 by admin

International Business Machines Corp reported higher than expected quarterly revenue and earnings per share, as it continued its shift to higher-end businesses such as big data, cloud computing, and security and mobile services.

Total revenue fell 2 percent to $24.4 billion in the second quarter, above analysts’ average estimate of $24.1 billion.

The world’s largest technology services company’s net profit rose to $4.1 billion, or $4.12 per share, from $3.2 billion, or $2.91 per share, a year earlier.

On an adjusted basis, the company earned $4.32 per share, beating analysts’ average estimate of $4.29, according to Thomson Reuters I/B/E/S.IBM shares fell 0.62 percent to $191.30 in after-hours trade. Hardware revenue plunged 11 percent to $3.3 billion, the seventh out of the last eight quarters the sector has seen double-digit declines weighed by continued cyclical pressure on its Power Systems servers. The company’s software business grew, with revenue rising 1 percent to $6.5 billion. IBM expects the sector to bring in half of the company’s profits by 2015.The company’s global technology services fell 1.7 percent to 9.6 billion.