Investing.com -- Shares in International Business Machines (NYSE:IBM) inched up in after-hours trading in spite of a 12% percent decline in quarterly revenue, as the multinational technology and consulting corporation saw its overseas earnings dented by a stronger dollar.
While company revenues ($19.6 billion for the first quarter of 2015) decreased on a year-over-year basis for the 12th consecutive quarter, IBM also announced diluted earnings from continuing operations of $2.91 per share, a 9% increase over the $2.68 earnings per share during the first period of 2014. IBM also reported an increase of 75% in its Cloud-related revenue on a currency adjusted-basis, which was also up approximately 60% overall.
"In the first quarter we had a strong start to the year. Our strategic imperatives growth rate accelerated, demonstrating the power of our offerings in these new opportunities and contributing to improved revenue performance," IBM chair, president and CEO Ginni Rometty said in a statement. "Our focus on higher value through portfolio transformation and investment in key areas of the business drove continued margin expansion."
IBM's first-quarter net income from continuing operations fell 5% on a year-over-year basis to $2.4 billion, in part due to a pension-related pre-tax charge for IBM Spain that resulted in a $0.2 billion loss for the company. The charge related to a court ruling in Spain, IBM said. IBM reported $2.35 of diluted earnings per share, a figure tamped down by net losses in discontinued operations related to its Microelectronics business.
IBM's free cash flows were flat on a year-to-year basis, the company said in a statement. Previously, analysts from RBC estimated that IBM could have as much as $2 billion in free cash flows after the release. IBM still announced the total shareholder return of $2.3 billion, including $1.1 in dividends.
For the year, IBM projected operating diluted earnings per share of $15.75 to $16.50.
Shares in IBM gained 0.54 or 0.32% in after-hours trading to 166.70. Earlier, IBM ended Monday's session as the top performer on the Dow Jones Industrial Average, gaining 5.49 or 3.42% to 166.16.