IBM's 2Q profit, revenue slip but beat Street forecasts

AP News
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Posted: Jul 18, 2016 6:22 PM
IBM's 2Q profit, revenue slip but beat Street forecasts

ARMONK, N.Y. (AP) — International Business Machines Corp. reported lower second-quarter net income and revenue on Monday but the results still topped Wall Street expectations.

The Armonk, New York-based company earned $2.5 billion, or $2.61 a share, in the April-June quarter, down from $3.45 billion, or $3.50 a share, a year earlier.

Earnings, adjusted for costs related to mergers and acquisitions and non-recurring costs, came to $2.95 per share in the latest quarter. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.89 per share.

The technology and consulting company posted revenue of $20.24 billion in the period, which also beat Street forecasts. Six analysts surveyed by Zacks expected $20.08 billion.

A year ago, its revenue was $20.81 billion.

Once the dominant PC-maker known as "Big Blue," IBM is confronting a sales slump as it struggles to adapt to changes in the way businesses buy software and other commercial technology. CEO Ginni Rometty has undertaken a plan to revamp its business to shift away from hardware and focus on business analytics, cloud computing, mobile services and security.

IBM shares rose 14 cents to $160 in after-hours trading.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on IBM at http://www.zacks.com/ap/IBM

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Keywords: IBM, Earnings Report