Categories AlphaGraphs, Earnings, LATEST, Technology

IBM Q2 profit rises 4%, beats estimates

International Business Machines (NYSE: IBM) reported a 4% increase in earnings for the second quarter of 2019 driven by an increasing mix of high-value offerings for clients with gross profit margin expansion and free cash flow growth. The results exceeded analysts’ expectations.

Net income increased by 4% to $2.5 billion or $2.81 per share. Adjusted earnings rose by 3% to $3.17 per share.

Revenues declined by 4% year-over-year to $19.2 billion. Cloud revenue growth accelerated in the quarter by 3.2% as the company aided its clients transition their business models to hybrid environments.

IBM Q2 profit rises 4% beats estimates

For full-year 2019, IBM remains on track to achieve adjusted operating earnings to be at least $13.90 per share and GAAP earnings of $12.45 per share or above. Cash flow is touted to be about $12 billion for the year. The company continues to expect Red Hat, including related activity, to be accretive to free cash flow in the first year, and accretive to adjusted earnings per share by the end of the second year after closing.

For the second quarter, revenue from Cloud & Cognitive Software increased by 3.2% helped by broad-based growth across hybrid cloud and data portfolio as well as cognitive applications led by security and growth across many industry vertical solutions.

Global Business Services revenue rose by 0.5% aided by growth across all business lines driven by digital strategy, next gen enterprise apps and hybrid cloud. Global Technology Services revenue declined by 6.7% as it reflects actions to shift away from low-value services content. Systems revenue dropped by 19.5% as IBM Z and Storage performance reflects product cycle dynamics and challenging year-over-year comparison. Revenues from Global Financing dropped by 11%.

Also read: Infosys Q1 earnings results

On August 2, the company said it will discuss how the acquisition of Red Hat will accelerate IBM’s revenue growth, contribute to its high-value model and enhance its free cash flow generation going forward.

IBM ended the second quarter with $46.4 billion of cash on hand, of which about $34 billion was used in July to close the acquisition of Red Hat. Debt totaled $73 billion, including Global Financing debt of $25 billion. IBM returned $1.8 billion to shareholders through $1.4 billion in dividends and $0.3 billion in gross share repurchases. The company suspended its share repurchase program on July 9.

Shares of IBM ended Wednesday’s regular session down 0.32% at $143.07 on the NYSE. Following the earnings release, the stock rose over 1% in the after-market session.

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

ISRG Earnings: Intuitive Surgical Q2 profit jumps on strong revenue growth

Medical device company Intuitive Surgical, Inc. (NASDAQ: ISRG) announced operating results for the second quarter of 2024, reporting higher revenues and adjusted profit. Second-quarter net profit, excluding one-off items, climbed

Infographic: Halliburton (HAL) reports strong earnings growth for Q2 2024

Energy giant Halliburton Company (NYSE: HAL) Friday announced financial results for the second quarter of 2024, reporting a double-digit increase in net profit. Second-quarter revenue edged up 1% annually to

AXP Earnings: Key quarterly highlights from American Express’ Q2 2024 financial results

American Express Company (NYSE: AXP) reported its second quarter 2024 earnings results today. Consolidated total revenues, net of interest expense, were $16.3 billion, up 8% from a year ago, driven


  1. Pingback: Orthodontics
  2. Pingback: fue
  3. Pingback: Fiverr Earn
  4. Pingback: Fiverr Earn
  5. Pingback: Fiverr Earn
  6. Pingback: Fiverr Earn
  7. Pingback: TMS System
  8. Pingback:
  9. Pingback: exotic bullies
  10. Pingback: morkie poo
  11. Pingback: springerdoodles
  12. Pingback: jute vs sisal rug
  13. Pingback: frenchie doodle
  14. Pingback: crypto news
  15. Pingback: sorority necklaces
  16. Pingback: smartphones
  17. Pingback: future university
  18. Pingback: Fiverr.Com
  19. Pingback: Fiverr
  20. Pingback: blue frenchie
  21. Pingback: fue
  22. Pingback: FUE
  23. Pingback:
  24. Pingback: Classic Books 500
  25. Pingback: Fiverr
  26. Pingback: FiverrEarn
  27. Pingback: Media
  28. Pingback: Coach
  29. Pingback: FiverrEarn
  30. Pingback: FiverrEarn
  31. Pingback: partners
  32. Pingback: Econometrics
  33. Pingback: FiverrEarn
  34. Pingback: FiverrEarn
  35. Pingback: FiverrEarn
  36. Pingback: FiverrEarn
  37. Pingback: FiverrEarn
  38. Pingback: FiverrEarn
  39. Pingback: FiverrEarn
  40. Pingback: FiverrEarn
  41. Pingback: FiverrEarn
  42. Pingback: FiverrEarn
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: Organic
  46. Pingback: rings
  47. Pingback: FiverrEarn
  48. Pingback: neurorise scam
  49. Pingback: cheap sex cams
  50. Pingback:
  51. Pingback: dog probiotics
  52. Pingback: frt trigger
  53. Pingback: 늑대닷컴
  54. Pingback: Slot Fantasi
  55. Pingback: nangs sydney
  56. Pingback: allgame
  57. Pingback: 918kiss
  58. Pingback: หวย24
  59. Pingback: Skincare tips
  60. Pingback: pg slot
  61. Pingback: cybersécurité
  62. Pingback: Raahe Guide
  63. Pingback: resort lake placid
  64. Pingback: contratar sicario
  65. Pingback: itsMasum.Com
  66. Pingback: itsMasum.Com
  67. Pingback: keylogger
  68. Pingback: Skywhip tanks
  69. Pingback: rome jobs
  70. Pingback: free adult webcams
  71. Pingback: free webcam sex
  72. Pingback: Kampus Islami
  73. Pingback: 918kiss

Comments are closed.

Add Comment
Viewing Highlight