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IBM - International Business Machines News Story

$146.12 0.9  0.6%

Last Trade - 2:55pm

Sector
Technology
Size
Large Cap
Market Cap £93.33bn
Enterprise Value £125.98bn
Revenue £53.07bn
Position in Universe 98th / 6849

UPDATE 1-IBM returns to sales growth after a year of declines on cloud strength

Mon 19th April, 2021 9:25pm
(Adds CFO comment, background, share movement)
    By Munsif Vengattil
    April 19 (Reuters) - International Business Machines Corp
 IBM.N  returned to sales growth in the first quarter after a
year of declines and beat Wall Street targets on Monday, boosted
by its bets in the high-margin cloud computing business.
    Shares of the Dow component, which have gained nearly 6% so
far this year, were up more than 4% in extended trading.
    Finance chief James Kavanaugh said cloud spending by clients
in retail, manufacturing and travel industries in the United
States was picking up after the initial pandemic-driven slump.
    Sales from its cloud computing services jumped 21% to $6.5
billion in the quarter. The 109-year-old firm is preparing to
split itself into two public companies, with the namesake firm
narrowing its focus on the so-called hybrid cloud, where it sees
a $1 trillion market opportunity.
    Big Blue recorded a sales decline in global technology
services, its largest unit, but that was largely offset by a
rise in revenue in the remaining three units, including a
surprise growth in the business that hosts mainframe computers.
    Mainframe saw strong traction from the financial services
industry, where its banking clients shopped for more capacity as
trading volumes soared during the retail trading frenzy, CFO
Kavanaugh said.
    Total revenue rose nearly 1% to $17.73 billion in the
quarter, beating analysts' average estimate of $17.35 billion,
according to IBES data from Refinitiv.
    Net income fell to $955 million, or $1.06 per share, in the
quarter ended March 31, from $1.18 billion, or $1.31 per share,
a year earlier.
    Excluding items, the company earned $1.77 per share, beating
market expectation of $1.63.

 (Reporting by Munsif Vengattil and Chavi Mehta in Bengaluru;
Editing by Arun Koyyur)
 ((munsif.vengattil@thomsonreuters.com))
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