International Business Machines Corporation (NYSE: IBM) reported its fourth quarter financial results after market close on Tuesday. IBM topped its quarterly estimates which sent shares surging by 6.8% after its release.
For the fourth quarter, IBM reported earnings of USD 4.87 per share on revenue of USD 21.76 Billion. Refinitiv analysts projected earnings of USD 4.82 per share on revenue of USD 21.71 Billion.
Despite the revenue beat, IBM reported that revenue has fallen 3% year over year. As for the full year, the Company delivered revenue of USD 79.6 Billion, increasing marginally by 1% year over year.
IBM’s better-than-expected revenue was driven by its Global Business Services. The segment reported revenue of USD 4.3 Billion for the quarter, increasing 4% year over year. The unit saw growth across consulting, application management, and global process service.
IBM’s biggest segment, Technology Services & Cloud platforms reported revenue of USD 8.9 Billion, declining 3% year over year. Cognitive Solutions revenue remained flat year over year at USD 5.5 Billion. Systems revenue slipped by 21% year over year to USD 2.6 Billion. Global financing revenue was reported at USD 402 Million, down 11% year over year.
The Company missed FactSet analysts’ Technology Services and Cloud revenue estimates of USD 9.04 Billion. IBM’s Systems revenue missed estimates of USD 2.77 Billion and its Global Financing unit also missed estimates of USD 426 Million.
However, IBM topped Cognitive Solutions and Global Business Service revenues of USD 5.27 Billion and USD 4.15 Billion, respectively.
For fiscal 2019, IBM is expecting GAAP earnings per share of at least USD 12.45 or non-GAAP earnings of USD 13.90 per share. Analysts are expecting earnings of USD 13.79 per share.
IBM shares are now up 14.5% since the beginning of the year.