U.S based Technology Company and cloud platform International Business Machine (IBM) posted its third quarter results fairly soaring above analysts’ revenue estimates in the quarter. The company attributed the good performance to high demand of its cloud business.
According to IBM’s chief financial officer James Kavanaugh, there are some consumer behaviors which tend to work in favor of the company by reducing expenses making it easier to generate better results.
“Clients’ near-term priorities continue to include operational stability, flexibility and cash preservation, which tends to favor operating expenses over capital expenses,” said Kavanaugh.
In the third quarter, revenue from the cloud business wing increased by 19% to $6 billion. This increase was strong enough to cater for other wings of the company which are lagging behind.
Total revenue for the quarter declined by 2.6% to $17.56 billion nonetheless this was still relatively higher than the $17.54 billion estimated by analysts.
IBM posted earnings per share of $2.58 in the quarter, this was in line with what analysts had estimated.