International Business Machines Corp. (NYSE:IBM) announced its financial results for the third quarter that topped consensus forecast amid growth in cloud and analytics segments. The company’s cloud revenue climbed 44 percent in the latest quarter, as compared to a surge of 30 percent in the prior quarter.
The Armonk, New York-based company’s operating gross margin slipped 2.1 percentage points to 48 percent.
Overall, IBM reported earnings of $2.85 billion, or $2.98 a share for the three-month period ended Sept. 30, as compared to $2.95 billion, or $3.01 a share in the same period last year. On an adjusted basis, earnings were $3.29 a share, above consensus forecast of $3.23 per share.
Revenue for the quarter slipped to $19.23 billion, as compared to $19.28 billion in the year-earlier quarter. Analysts surveyed by Thomson Reuters were looking for $19 billion in revenue.
Looking forward, the company kept its adjusted earnings outlook of at least $13.50 a share for the full year.
IBM shares fell more than 3 percent in the after-hours trading amid flat quarterly revenue. The stock has surged about 11 percent so far this year. The 52-week range of the stock is $116.90-$165.00. The company’s market cap is $148.64 billion and P/E ratio of 12.57.