ARMONK, N.Y. — International Business Machines Corp. on Monday reported better-than-expected third-quarter results, thanks to strong growth in cloud and other strategic initiatives.
The Armonk, New York-based company earned $2.85 billion, or $2.98 per share. Earnings, adjusted for costs related to mergers and acquisitions and non-recurring costs, came to $3.29 per share.
The results surpassed Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $3.21 per share.
The technology and consulting company posted revenue of $19.23 billion in the period, which also beat Street forecasts. Seven analysts surveyed by Zacks expected $19.01 billion.
A year earlier, IBM earned $2.95 billion, or $3.02 per share, on revenue of $19.28 billion.
IBM’s strategic imperatives revenue, which includes cloud, analytics, mobility and security, rose 16 percent year over year, with cloud revenue alone up 44 percent.
IBM said it still expects full-year earnings of at least $13.50 per share. That compares with the average analyst estimate of $13.51 per share, based on a survey by FactSet.
IBM shares have risen 12 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 4 percent. The stock shed 2.9 percent in after-hours trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on IBM at http://www.zacks.com/ap/IBM
Keywords: IBM, Earnings Report