IBM shares rose 1 percent after reporting better-than-expected second-quarter results on Wednesday. The company will hold a press conference with analysts at 5pm. Eastern time.
In a news release Tuesday, analysts at Cantor Fitzgerald, led by Joseph Foresi, said they expected margins to decline in the quarter. They anticipated that the second-quarter figures will gather momentum thanks to recent currency developments.
For the first time, IBM generated more than half of its revenue from strategic areas such as Social, Mobile, Analytics and Cloud at $ 1
IBM announced in the second quarter that cloud revenue increased 20 percent to $ 4.7 billion. The annual revenue rate for the cloud delivered as a service was $ 11.1 billion, an increase of 26 percent over the previous year. The company's investments totaled just over $ 1 billion in the quarter.
The Company's largest business, Technology Services and Cloud Platforms, reached $ 8.62 billion in consensus among FactSet analysts.
The Cognitive Solutions segment had $ 4.58 billion in revenue, just below the $ 4.76 billion FactSet consensus. The Global Business Services segment generated $ 4.19 billion in revenue, exceeding $ 4.16 billion in the FactSet estimate.
The Systems business also exceeded expectations at $ 2.18 billion, while FactSet analysts expected $ 1.85 billion
In the second quarter, the company acquired Oniqua, and IBM CEO Ginni Rometty said it had designed the fastest supercomputer in the world. The company also confirmed that layoffs impacted its Watson Health group.
"This may be anecdotal, but we attended a major healthcare IT conference this spring, and informal discussions with Watson Health employees have shown that business feels a lot more cohesive and integrated than before," wrote Stifel analysts under the direction of David Grossman in a note of July 12.
And at the end of June, Nomura Instinet analysts led by Jeffrey Kvaal began initial valuation of Buy and a price target
"After years of decline, IBM is ready for sustained, albeit modest, revenue growth and a mid single-digit EPS growth, "analysts said.
IBM shares have declined 6 percent since the beginning of the year
Programming Note: For more information on IBM, see Jim Cramer's interview with IBM Senior Vice President of Global Markets, Martin Schroeter, this evening 6 pm Eastern time.
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