IBM reported earnings of $3.29 per share on $1 9.23 billion in revenue in Q3, topping analyst expectations of $3.23 per share and about 19 billion in revenue, according to the Thompson Reuters. consensus estimate
CEO Ginni Rometty attributed its quarterly numbers “to growth in IBM’s “ strategic imperatives,” including businesses such as cloud analytics security and mobility.
In a statement she said the company’s breakthrough technologies led by Watson and the IBM cloud and their ability to handle massive amounts of data, is helping the company build new markets and transform industries.
The numbers back up her statement. IBM’s cloud-based services grew 16% year-over-year and its quarterly cloud revenue grew 44 percent year-over-year.
Strategic imperatives revenue of $31.8 billion over the last 12 months represents 40 percent of IBM revenue.
The company’s technology services and cloud platform segment racked up $8.7 5 billion in revenue in the quarter, topping Wall Street estimates.
Revenues from analytics increased 15 percent (up 14 percent adjusting for currency). Revenues from mobile increased 19 percent and revenues from security increased 11 percent.
“Throughout the year, we have continued to invest where we see the greatest opportunities to create new markets and strengthen our enterprise IT leadership position,” said Martin Schroeter, IBM senior vice president and chief financial officer in a statement. “This has included more than $12 billion across capital expenditures, R&D and acquisitions so far this year. At the same time, we have returned more than $6 billion to shareholders through dividends and share repurchases.”
The company repeated its guidance for the full year, and expects adjusted earnings of at least $13.50 a share in fiscal 2016.
“IBM’s third-quarter performance, led by continued double-digit growth in our strategic imperatives, is a testament to our leadership in cognitive solutions and cloud Rometty, IBM chairman, president and CEO said in a statement.
. “Our ability to apply deep expertise and breakthrough technology, led by Watson and the IBM Cloud, to massive amounts of data is enabling us to build new markets and transform industries. Whether it is banks implementing IBM blockchain solutions, hospitals leveraging Watson to fight cancer, or retailers using cognitive apps built on the IBM Cloud to transform the customer experience, clients across all industries are tapping into a new kind of innovation value from IBM.”
IBM stock was down about $4.59, about 3 percent in after hours trading, selling for $150.18 a share.
