Brendan McDermid / Reuters
- IBM shares rallied in after-hours trading on Wednesday after the company reported stronger than expected earnings.
- The company reported adjusted earnings of $3.17 a share, beating the Wall Street estimate of $3.07 a share.
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IBM’s stock was last up more than 3% at $147.64, after closing at $143.09 in the regular trading session.
Big Blue reported a second-quarter profit of $2.5 billion, or $2.81 a share, up from $2.4 billion, or $2.61 a share in the year-ago period. The company posted revenue of $19.2 billion, down 4% from the same period last year.
Adjusted profit was $3.17 a share. Wall Street analysts were expecting the company to report profit of $3.07 a share, on revenue of $19.16 billion.
IBM CEO Ginni Rometty highlighted the company’s focus on "high-value areas," particularly the company’s cloud business. IBM’s cloud and cognitive software unit posted sales of $5.6 billion, up 3.2%.
IBM had just completed its $3.4 billion acquisition of Red Hat, the open-source cloud software pioneer, which the company expects to give it a lift in its bid to become more competitive in the cloud.
"With the completion of our acquisition of Red Hat, we will provide the only true open hybrid multi-cloud platform in the industry, strengthening our leadership position and uniquely helping clients succeed in chapter 2 of their digital reinventions," Rometty said in a statement.
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