IBM Shows Renewed Sales Growth, But It's From the Wrong Place
- Profit margins, important business unit missed estimates
- IBM is trying to prove it can grow sustainably in long term
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IBM may have won back some investors’ trust after posting renewed sales growth, but it’s been driven mostly by older business units instead of the newer technology the company touts as key to its future.
Revenue gained 2 percent, adjusted for currency fluctuations, to $20 billion in the second quarter, International Business Machines Corp. said Wednesday. Analysts estimated $19.9 billion. Profit, excluding some items, was $3.08 a share, compared with analysts’ projections of $3.04 a share. The shares jumped as much as 4.2 percent, the most intraday since October.