IBM rises after Q3 beat driven by software growth
+0.26% to $252.11 from $251.46
What moved IBM
- IBM reported third-quarter revenue of about $17.1 billion, ahead of the roughly $16.8 billion analyst consensus, with adjusted EPS of $2.95 versus $2.86 expected.
- Software revenue rose 8% to $7.8 billion, consulting revenue was flat at $5.3 billion, and infrastructure revenue rose 4% to $3.7 billion.
- IBM raised its free-cash-flow outlook, now expecting growth of more than $1 billion year-over-year, up from prior guidance of ‘about $1 billion.’
- Full-year revenue growth guidance was maintained at 4% to 5%.
- One analyst noted part of the software growth reflected deals that slipped from the second quarter into the third, tempering enthusiasm about the beat.
Sources: CNBC · Investing.com · Benzinga · Seeking Alpha