By Yasin Ebrahim
Investing.com - IBM (NYSE:IBM) did not reinstate guidance Monday after reporting in-line third-quarter reuslts that were boosted by stronger cloud growth, led by Red Hat.
IBM shares lost 0.29% in after-hours trade following the report.
IBM announced earnings per share of $2.58 on revenue of $17.56 billion. Analysts polled by Investing.com anticipated EPS of $2.58 on revenue of $17.54 billion.
Cloud & cognitive software revenues rose 7%, with cloud & data platforms up 20% led by Red Hat, which IBM acquired last summer in a $34 billion deal. Red Hat revenue rose 18% from 24% quarter-on-quarter.
Global business services revenue was down 5%, to $4 billion.
“The strong performance of our cloud business, led by Red Hat, underscores the growing client adoption of our open hybrid cloud platform," said Arvind Krishna, IBM chief executive officer. "Separating the managed infrastructure services business creates a market-leading standalone company and further sharpens our focus on IBM's open hybrid cloud platform and AI capabilities. This will accelerate our growth strategy and better position IBM to seize the $1 trillion hybrid cloud opportunity.”
Looking ahead, the company did not reinstate guidance.
IBM shares are down 6% from the beginning of the year, still down 20.93% from its 52 week high of $158.75 set on February 6. They are under-performing the Dow Jones Industrial Average, which is down 1.2% from the start of the year.
Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar