Strong demand at IBM’s consulting and infrastructure business helped the hardware giant post second-quarter revenue of C$15.54 billion, exceeding analyst estimates of C$15.18 billion.
IBM posted an adjusted gross profit margin of 54.5 per cent for the quarter ended June 30, compared with an average of 56.6 per cent expected by analysts.
IBM’s cloud revenue rose 18 per cent to C$5.9 billion. Excluding special items, the company earned C$2.31 per share, exceeding estimates of C$2.27.
IBM is banking on high-growth software and consulting businesses with a focus on the so-called “hybrid cloud.” Despite the ongoing turbulence, the company expects continued revenue growth in regions such as Europe and Asia-Pacific.
Chief Financial Officer James Kavanaugh explained that a strong U.S. dollar and heightened political tensions had put pressure on the company’s near-term results.
Kavanaugh said, however, that the company is sticking to its full-year guidance of reaching the upper end of mid-single-digit revenue growth at constant currency.
Contrary to an earlier forecast of 3 per cent-4 per cent, IBM now expects a foreign exchange impact on sales of about 6 per cent this year.
The sources for this piece include an article in Reuters.