(Reuters) – International Business Machines Corp (IBM.N) forecast full-year profit above market expectations on Tuesday after reporting surprise growth in quarterly revenue, boosted by its high-margin cloud computing business, sending its shares up more than 4%.
The logo for IBM is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 27, 2018. REUTERS/Brendan McDermid
Over the past few years, Chief Executive Officer Ginni Rometty has been trying to shift the company’s focus to the cloud through acquisitions and also by selling some of IBM’s legacy businesses.
IBM bought Linux maker Red Hat Inc in a $34 billion deal last year, its biggest acquisition so far, in a push to expand its subscription-based software business.
Revenue from the cloud business rose 21% to $6.8 billion in the fourth quarter, its largest so far.
The company forecast an adjusted profit of at least $13.35 per share for the year, compared with estimate of $13.29.
Source Reuters Tech News