The computer manufacturer was able to please investors with the figures for the fourth quarter.
(Photo: Reuters)
Armonk Computer manufacturer IBM exceeded expectations for the fourth quarter. In the consulting business, sales increased by 13.1 percent to $4.75 billion. The cloud division reported a 16 percent increase in sales to $6.2 billion. Overall, revenue rose 6.5 percent to $16.7 billion. On average, analysts had only expected just under 16 billion.
Net income increased by almost a billion to $2.33 billion or $2.57 per share. The group reiterated its guidance for revenue growth in the mid-single-digit percentage range this year, compared to 3.9 percent last year. After the trading day, IBM shares rose by almost five percent.
The traditional company has focused on the high-growth software and consulting business in order to boost sales. In November, the group sold its former managed infrastructure business. In his new business model, software and consulting make up around 70 percent of total sales. As the cloud becomes more prevalent around the world, the company has shifted its focus to the “hybrid cloud,” where companies use a combination of their own data centers and leased computing resources to store and process data.
In 2021 as a whole, IBM increased sales by around four percent to $57.4 billion. Net income increased by nearly three percent to $5.7 billion.
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