AP
IBM benefitted from new and old businesses in the third quarter, as its cloud computing offerings as well as sales of mainframe computers helped the company beat Wall Street revenue targets.
Shares of IBM were up nearly 4% in after hours trading on Tuesday, following the earnings release.
Even so, IBM failed to put an end to its 22-quarter revenue decline.
Here's what the company reported:
- Revenues (GAAP) were at $19.15 billion, down from $19.23 billion in the year ago period, but above analyst estimates of $18.59 billion.
- Earnings per share (non-GAAP) were at $3.30, compared to analyst estimates of $3.28.
- Projected earnings for fiscal 2017 (non-GAAP) are $13.80, compared to analyst estimates of $13.75.
Despite the decline, IBM appears to be growing where it counts.
Cloud services — one of the company's key areas of focus — saw revenues of $4.1 billion for the quarter, up 20% from the third quarter last year. Last quarter, cloud revenues were at $3.9 billion, up 15% from the second quarter last year.
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