International Business Machines Corp reported higher than expected quarterly revenue and earnings per share, as it continued its shift to higher-end businesses such as big data, cloud computing, and security and mobile services.
Total revenue fell 2 percent to $24.4 billion in the second quarter, above analysts’ average estimate of $24.1 billion.
The world’s largest technology services company’s net profit rose to $4.1 billion, or $4.12 per share, from $3.2 billion, or $2.91 per share, a year earlier.
On an adjusted basis, the company earned $4.32 per share, beating analysts’ average estimate of $4.29, according to Thomson Reuters I/B/E/S.IBM shares fell 0.62 percent to $191.30 in after-hours trade. Hardware revenue plunged 11 percent to $3.3 billion, the seventh out of the last eight quarters the sector has seen double-digit declines weighed by continued cyclical pressure on its Power Systems servers. The company’s software business grew, with revenue rising 1 percent to $6.5 billion. IBM expects the sector to bring in half of the company’s profits by 2015.The company’s global technology services fell 1.7 percent to 9.6 billion.