Today IMB raised the curtain on its 2015 first quarter financials, revealing revenues of $19.6 billion and (non-GAAP*) earnings per share of $2.91. Wall Street had expected Big Blue to report revenue of $19.73 billion and earnings of $2.82 per share.
IBM missed the mark on revenue by some $130 million, but beat on earnings by about $0.09. That revenue figure reflects a few of IBM’s challenges this year, including the rising value of the U.S. dollar (this affects companies that rely on or compete with foreign markets), and the sale of IBM’s commodity server business. However, IBM said its cloud revenue — an increasingly crowded market — “was up more than 75 percent adjusting for currency and divested businesses; up more than 60 percent as reported.”
So, what do investors think of this? They don’t seem to care all that much: In after-hours trading, IBM was down by less than 0.2 percent and then rose in the opposite direction — at the time this story was published, IBM was up by about half a percent. In normal trading, IBM was up by about 3.5 percent.
*Using nonstandard accounting practices.
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