IBM share clearly in the plus: IBM can beat expectations

Revenue grew last quarter by eight percent to $14.2 billion (around €13.2 billion), as IBM announced after the US stock market closed on Tuesday. Analysts had rather expected $13.85 billion.

The bottom line at continuing operations was $662 million, down from $403 million on that basis a year earlier. It was the first full quarter since the infrastructure management business was spun off into Kyndryl. In the past quarter, the group also sold the business with applications of its artificial intelligence Watson in the healthcare sector.

The software business grew last quarter by 12.3 percent to $5.8 billion. In the consulting division there was an increase of 13.3 percent to 4.8 billion dollars.

IBM quarterly figures at highest level since early January

After better-than-expected quarterly figures, IBM shares took first place in the leading US index, the Dow Jones Industrial, with high price gains on Wednesday. Just under two and a half hours before the market closed, they gained 7.7 percent to a good $139. They last cost more than $139 at the beginning of the year.

The computer group benefited from growth in the software and consulting business. The spin-off of the more traditional IT service business is paying off more and more for IBM, wrote analyst Ingo Wermann from DZ Bank. “The new mainframe generation should also give wings to the infrastructure division,” says the expert. IBM shares offered an attractive combination of low valuation and high dividend yield.

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ARMONK (dpa-AFX)

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