IBM shares rise as coronavirus sends business to the cloud
Revenue from the cloud business increased 30 percent to $6.3 billion
Shares of International Business Machines rose 5 percent in extended trading after the company reported quarterly earnings that topped expectations.
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IBM's shift to its high-margin cloud computing business is paying off as companies made the digital shift due to the coronavirus pandemic.
Revenue from the cloud business increased 30 percent to $6.3 billion.
The company reported second-quarter earnings of $1.36 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| IBM | INTERNATIONAL BUSINESS MACHINES CORP. | 222.34 | +7.73 | +3.60% |
On a per-share basis, that breaks down to net income of $1.52. Earnings, adjusted for costs related to mergers and acquisitions and non-recurring costs, were $2.18 per share.
The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.14 per share.
Revenue for the technology and consulting company fell 5.4 percent to $18.12 billion in the period, but still exceeded Street forecasts. Three analysts surveyed by Zacks expected $17.71 billion.
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The Associated Press contributed to this article.