International Business Machines Q1 Results Beat Street View

(RTTNews) - International Business Machines Corp. (IBM) Tuesday reported results for the first quarter, with both earnings and revenues trumping Wall Street estimates.

Armonk, New York-based IBM reported first-quarter profit of $733 million or $0.81 per share, down from $955 million or $1.06 per share last year.

Excluding items, IBM's adjusted earnings from continuing operations were $1.40 per share for the period. Analysts polled by Thomson Reuters expected earnings of $1.38 per share. Analysts' estimates typically exclude special items.

IBM's first-quarter revenues rose 8 percent to $14.20 billion from $13.19 billion last year. Analysts had a consensus revenue estimate of $13.85 billion for the quarter.

"Demand for hybrid cloud and AI drove growth in both Software and Consulting in the first quarter. Today we're a more focused business and our results reflect the execution of our strategy," said Arvind Krishna, IBM chairman and chief executive officer. "We are off to a solid start for the year, and we now see revenue growth for 2022 at the high end of our model."

Software, including Hybrid Platform & Solutions, Transaction Processing, revenues were up 12.3 percent to $5.8 billion, while Consulting revenues, which includes Business Transformation, Technology Consulting and Application Operations, rose 13.3 percent to $4.8 billion. Infrastructure revenues, which includes Hybrid Infrastructure, Infrastructure Support, dropped 2.3 percent to $3.2 billion.

Looking forward, the company said it now expects constant currency revenue growth at the high end of the mid-single digit range. The company also expects an additional 3.5 point contribution from incremental sales to Kyndryl.

IBM closed Tuesday's trading at $129.15, up $2.98 or 2.36%, on the NYSE. The stock further gained $2.88 or 2.23% in the after-hours trading.