Shares of International Business Machines Corp. gained Monday night, after the tech giant reported another decline in revenue, but produced more profits and sales than Wall Street expected amid the COVID pandemic- 19.
IBM IBM,
reported second-quarter net income of $ 1.36 billion, or $ 1.52 per share, compared to $ 2.5 billion, or $ 2.81 per share, in the same period last year. Adjusted earnings were $ 2.18 per share, compared to $ 3.17 per share a year ago. Revenue decreased to $ 18.12 billion from $ 19.16 billion in the prior year quarter. Analysts surveyed by FactSet had forecast adjusted earnings of $ 2.09 per share in revenue of $ 17.73 billion on average.
IBM reported a decrease in revenue in April, returning Big Blue to a losing streak that briefly broke when it barely managed to get a slight increase in sales in the fourth quarter. IBM sales have decreased year-over-year in all but four of the past 32 quarters.
IBM shares increased more than 5% in after-hours activity, after gaining 1% to close the regular session at $ 126.35. For the year, IBM shares fell approximately 5%, while the DIA Jones Industrial Average DJIA,
– which has IBM as a component – has a discount of 6.5%, the S&P 500 SPX index,
is down less than 1%, and the Nasdaq Composite Technology Index, COMP,
Up 20%.
Sales of cognitive and cloud software, which includes IBM’s Red Hat business, reached $ 5.75 billion, compared to $ 5.65 billion in the year-ago quarter, while analysts had forecast $ 5.74 billion. Systems revenue, which includes mainframes, was $ 1.85 billion versus $ 1.68 billion from Street view.
Global technology services revenue reached $ 6.32 billion, while the street expected $ 6.24 billion, and global business services revenue accounted for $ 3.89 billion in sales, while the street had forecast $ 3.87 billion.
Of the 18 analysts that IBM covers, three have overweight or buy ratings, 13 have hold ratings, and two have sell ratings, along with an average price of $ 126.60.
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