International Business Machine Corporation has shown good results on Tuesday. Shares saw a surge by 6.4 percent and closed the day at $122.51 after results. However, it saw a 1.1 percent decline earlier.
Earnings per share were expected at $4.82, but the company was able to show earnings of $4.87 per share. Revenues of IBM were expected at 21.71 billion, while the company has shown better revenue than expected at $21.76 billion.
Revenues have seen an increase by 1percent, the first annual growth shown by the company since 2011, on a full-year basis.
Cloud platform services and technology services have shown the best performance and have posted revenue of $8.9 billion. Revenue from Cognitive Solutions has performed beyond expectations of $5.27 billion, by increasing to $5.5 billion. Cloud platform services and technology services include IBM cloud.
IBM intends to purchase Red Hat chip manufacturing for $34 billion. It has raised revenue by selling to HCL Technologies its software assets worth $1.8 billion.
The chairman, CEO, and president of IBM Ginni Rometty says that many are turning to IBM cloud for better business and for its innovative drive, with clients like BNP Paribas.
The computer maker has been able to attract investors with its show of growth, as market rate jumped after market trading hours. In December, it had gone to a 10-year low of $110 per share. Investor confidence which was low last year has improved with good results.
The Chief financial officer Jim Kavanaugh says that it is the first time after many years that the company has shown an increase in revenue, earnings per share and operating income. He has pointed out to the main growth business which has shown revenue of $39.8 billion, stating that the company is on the right growth track.