IBM (IBM) earnings, reported after the market close Tuesday, beat Wall Street estimates on the top and bottom line for the company's fourth quarter. IBM stock rose in after-hours trading.
The tech giant said adjusted earnings were $4.87 per share, beating analyst estimates for $4.82. It reported revenue of $21.76 billion, slightly ahead of the $21.75 billion forecast.
X
For this year, IBM said its expects adjusted earnings of $13.90, above analyst views for $13.84.
It reported full-year revenue of $79.6 billion, up 1% and the first year-over-year growth in 7 years.
IBM stock was up 6.5%, near 130.58, during after-hours trading on the stock market today. During regular hours IBM stock fell 1%.
The technology giant has been undergoing a business transition for several years. It now focuses on cloud computing, data analytics, mobile technology, social media and security.
The collection of businesses are referred to as strategic imperatives. For the year, revenue from strategic imperatives reached $39.8 billion, up 9% from the year-ago period. Revenue from IBM's cloud computing operations rose 12% to $19.2 billion.
Acquisition Of Red Hat
To bolster its cloud efforts, in late October IBM announced a deal to acquire cloud-computing company Red Hat for $34 billion in cash. The Red Hat acquisition strengthens IBM as a major cloud provider.
It also improves its standing among rivals, KeyBanc Capital Markets analyst Arvind Ramnani wrote in a note to clients last week. They include Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL), Ramnani said.
IBM ended the fourth quarter with $12.2 billion of cash on hand. Debt totaled $45.8 billion.
"In 2018 we returned to full-year revenue growth, reflecting growing demand for our services and leadership solutions in hybrid cloud, AI, analytics and security," said Ginni Rometty, IBM chief executive officer, in prepared remarks.
YOU MIGHT ALSO LIKE:
After Hours: These 4 Stocks Are Moving On News
