IBM’s revenue exceeded forecasts due to the growth of the “cloud” business

News

IBM’s revenue exceeded forecasts due to the growth of the “cloud” business

21.10.2020 News

US International Business Machines Corp. (IBM) slightly increased its net profit in the third quarter of 2020, despite on the declining revenue in the context of the coronavirus pandemic, forcing businesses to delay implementation of projects to preserve capital.

According to the press release of the company, Net income in July-September was $ 1.7 billion, or $ 1.89 per share, compared to $ 1.67 billion, or $ 1.87 per share, for the same period last year. Earnings excluding one-time factors amounted to $ 2.58 per share.

IBM’s quarterly revenue decreased from 2.6% to $ 17.56 billion.

Experts surveyed by FactSet, on average, the company’s net profit in the third quarter was projected at $ 2.08 per share, adjusted earnings – $ 2.58 per share, revenue – $ 17.54 billion.

Earlier this month, IBM announced plans to spin off the IT infrastructure management operations to the independent company. At the same time, it published preliminary reports for the third quarter.

IBM is increasingly focusing on the fast-growing hybrid cloud technology operations. In the last quarter, the total revenue from cloud services scattered across different parts of the company jumped from 19% to $ 6 billion, noted in IBM.

Revenue from the cloud and cognitive technology division (including cloud and data processing platforms, cognitive applications and transaction processing platforms, and Red Hat metrics) rose to 7% in the third quarter to $ 5.55 billion. Experts predicted an average revenue of the business at $ 5.48 billion.

“The good performance of our cloud business, especially Red Hat, underscores the growing use of our open hybrid cloud platform by customers,” said IBM CEO Arvind Krishna. – The business department in the field of managed IT-infrastructure will create the independent company with leading market positions, and will allow IBM to narrow its focus by focusing on the hybrid cloud platform and artificial intelligence of the capabilities. ”

Global technology services revenue fell from 4% to $ 6.5 billion in the third quarter (consensus forecast $ 6.25 billion). In the field of IT consulting, revenue decreased by 5% to $ 4 billion (consensus forecast – $ 3.9 billion), in the segment responsible for hardware and software production, – decreased by 15% to $ 1.3 billion (consensus forecast – $ 1.55 billion).

Shares of IBM fell to 2.9% on Monday in additional trading after the company published the reports. Since the beginning of this year, its capitalization has decreased by 6.4%, while the Dow Jones Industrial Average fell by 1% during this period.

Other articles

  • Pfizer will deliver half of the planned number of vaccines in 2020
    News

    Pfizer will deliver half of the planned number of vaccines in 2020

    Shares of Pfizer and BioNTech fell 1.74% and 2% (respectively) on Thursday amid news that companies will deliver half of their planned number of vaccines against COVID-19 in 2020. On November 20, Pfizer and its German partner BioNTech applied to the FDA (US Food and Drug Administration) for permission to use their vaccine in an […]

  • IBM makes two cloud acquisitions a week: TruQua and Instana
    News

    IBM makes two cloud acquisitions a week: TruQua and Instana

    This week, IBM announced two acquisitions in the field of cloud computing: financial and analytical IT company TruQua Enterprises and software company Instana. The financial terms of the two agreements were not disclosed. On Monday, IBM announced the acquisition of TruQua, which provides SAP solutions to Fortune 500 companies. SAP is one of the world’s […]

  • Americans bought the Ukrainian IT-company
    News

    Americans bought the Ukrainian IT-company

    Ukrainian IT company the Archer Software has announced an agreement with the American company Cprime. This was reported on the company’s website. The amount of the deal is not disclosed, but the publication Ain says, “According to experts, 100% of the company could be valued at 5-8 million dollars.” But the transaction amount may vary […]

  • AMD will buy the chip maker Xilinx
    News

    AMD will buy the chip maker Xilinx

    Chip maker, Advanced Micro Devices, is in talks to buy a rival chip maker – the American company Xilinx, reported The Wall Street Journal. The deal might be exceeding to $ 30 billion and could be announced for the next week. The merger will become one of the largest transactions in the industry this year, […]

  • Berkshire Hathaway is investing $ 570 million in technology startup of the Snowflake
    News

    Berkshire Hathaway is investing $ 570 million in technology startup of the Snowflake

    Warren Buffett’s US company – Berkshire Hathaway intends to invest more than $ 570 million in Snowflake, a cloud technology company. It was reported after Snowflake announced a price range for its future initial public offering. The company wants to get the estimate of $ 23.7 billion, writes the Financial Times. Snowflake said that during […]

  • S&P 500 and Nasdaq have updated records on a background due to hopes for treatment with COVID-19
    News

    S&P 500 and Nasdaq have updated records on a background due to hopes for treatment with COVID-19

    The US stock market came out in the plus on Monday, сontinuing to rise in the previous two sessions, while the S & P 500 and Nasdaq updated a high record due to the investor`s optimism about the prospects of treatment of coronavirus infection COVID-19. The news that the US Food and Drug Administration (FDA) […]

  • IBM has introduced a new generation POWER10 processor for hybrid cloud computing
    News

    IBM has introduced a new generation POWER10 processor for hybrid cloud computing

    Corporation of International Business Machines Corp on Monday announced an edition of a new central processing unit (CPU) for data centers POWER10. According to the company’s press release, the processor is made in the form factor of 7 nm with increased energy efficiency and three times better workload capacity than the previous generation of IBM […]

Read also

IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

S.Tihipko privatizes PJSC Aegon Life Ukraine and Universal Bank

The Ukrainian authority continues  bank privatisation allowing. For the present, Anti-Monopoly Committee of Ukraine (AMCU) gives the permission to Sergei Tihipko of Universal Bank purchasing through the Bailican Limited Company. AMCU provides also allowance  to Sergei Tihipko on the mediated acquisition through the T.A.S. Overseas investments Limited company . He intends to buy shares of […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

China imposes standards of data security and criticizes the US policy

On Tuesday, Chinese Foreign Minister Wang Yi presented the government’s initiative to implement global data security standards, “golden rules” which should be applied by Chinese and other companies around the world. Among a number of points, the key ones are: preventing the illegal receipt of confidential personal information, ensuring the storage user`s data on the […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Foreign pharmaceutical company will invest $ 50 million in the construction of a plant in the Kiev region

Foreign pharmaceutical company Euro Pharma International is building a new pharmaceutical plant in Kiev Svyatoshinsky district, Kyiv region. The first phase of the project start is scheduled for autumn 2016. To date, the company estimates the volume of investments of $ 50 million. “I am very pleased that the foreign investors are interested in our […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

The transaction between Dow Chemical Company and DuPont will be the largest on the market of mergers and acquisitions in 2015

The agreement between two chemical corporations will make a company with a market value of $ 120 million. According to information of WSJ, two companies began to discuss  the merger in November 2015. Now representatives of the enterprises carry out the last part of the negotiations between the leaders. When companies announced about agreement between […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Amazon reported a 37% increase in revenue

Shares of Amazon, which rose by 73.8% since the beginning of the year (more than the growth of Apple, Microsoft, Google and Facebook), fell 2% after closing trading on Thursday, when the company released a report for the 3rd quarter, which ended September 30. Amazon set a new revenue record, e-commerce increased sales by 57% […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Volkswagen is to invest $ 75 billion in “technology of the future”

German automaker Volkswagen will invest about 73 billion euros over the next five years in electrification, hybrid powertrains and digital technology, the company said in a statement following a meeting of the supervisory board. In particular, about 35 billion euros are planned to be spent on electric cars on battery power, about 11 billion – […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Farmak сan be deprived of license to use the trademark Diazolinum

Commercial Court of Kiev  took to attention  the case of the right’s  deprivation of Farmak Ukraine on the use of certificates for signs for Diazolinum goods. It is reported by a specialized news resource Pharma.net.. A prerequisite to the beginning of the litigation was an appeal of representatives of the international distributor of Farmat LTD […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Musk called the new date of flight Starship spacecraft into orbit

The American company SpaceX will launch the first Starship spacecraft into Earth orbit, most likely in 2021. It said its founder Elon Musk, speaking at a video conference on the problem of human flight to Mars, according to TASS on Tuesday, September 1. Mask was asked when the first test flight of Starship into orbit […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Ukraine is expected to install 3 GW of solar power facilities by 2020

The capacity of installed solar energy facilities in Ukraine will increase up to 3 GW by 2020. Vitaliy Daviy, CEO of IB Center Europe, made such forecast for the development of the industry at CISOLAR 2019 the 8th Solar Energy Conference in Kiev. As of April 1, 2019, more than 2.2 GW of solar energy […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Shares Virgin Galactic of Richard Branson dropped by 13% through an additional emission

Shares of aerospace company Virgin Galactic fell by 13.78% to $ 20.71, according to trading data on the New York Stock Exchange. Securities of Richard Branson’s company are getting cheaper due to the background of the announcement of an additional issue emission. Virgin Galactic announced its intention to issue approximately 20.5 million new shares to […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Ukrainian startup Replyapp raised $ 400 thousand of investments

Digital Future and WannaBiz invest in the Ukrainian startup Replyapp $ 400 000. This is stated in the Digital Future report. The founder of the project relied on a smaller sum. But investors felt that they need to invest in the growth of the project amid rising competition in America. The first investor invests $ […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Ukraine sold agricultural products for $ 17.6 billion

In January-October 2020, Ukraine reduced exports of agricultural products by 1.7% compared to the same period last year. According to the Ukrainian Club of Agrarian Business Association exports were reduced exactly to $ 17.6 billion. According to this data, imports of agricultural products for the reporting period increased by 14.4% to $ 5.1 billion. Thus, […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Starbucks demonstrates rapid sales recovery

Shares of Starbucks recovered from losses of February and March due to the pandemic and rose by 19.7% over the past 6 months. But shares fell again after the publication of the quarterly report, which ended September 30. Starbucks revenue and profit for the 4th quarter of fiscal 2020 showed a strong jump in growth […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Amazon is releasing updated Echo Frames smart glasses with Alexa

On Thursday, Amazon announced the release of its updated smart glasses Echo Frames starting on December 10. Now everyone will be able to buy it. The new product from Amazon for $ 250 will go on sale just before the holiday weeks, which is a good time to start the release. Analysts and market experts […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

Microsoft has frozen financing politicians in the US

Microsoft has frozen donations to American politicians who voted against Joe Biden’s approval as president after the election. This decision will be valid until 2022. In addition, Microsoft will not support state-level politicians and organizations that have tried to challenge the election results. According to Brad Smith, the president of the corporation, in the last […]

Next
IBM’s revenue exceeded forecasts due to the growth of the “cloud” business
News

The court barred Uber and Lyft from classifying drivers as contractors in California

Uber has already tried to give drivers more autonomy so that they are considered contractors rather than employees. A California court has issued a preliminary order ordering Uber and Lyft to immediately retrain drivers from contractors to company employees. The order will take effect in 10 days. As independent contractors, Uber and Lyft drivers do […]

Next
WP2Social Auto Publish Powered By : XYZScripts.com