IBM Stock Gains in After-Hours Trading on Q2 Earnings Beat

IBM stock is advancing in after-hours trading Monday after the tech giant posted solid results for the 2016 second quarter.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of IBM (IBM) - Get Report are climbing 3.31% to $165.15 in after-hours trading Monday after the company reported better-than-expected results for the 2016 second quarter.

After today's market close, the Armonk, NY-based tech giant posted earnings of $2.95 per share, surpassing analysts' expectations of $2.89 per share.

Revenue declined 3% to $20.24 billion from last year, but was above Wall Street's estimates of $20.03 billion.

IBM has now reported revenue declines for 17 consecutive quarters.

Additionally, the company said revenue from cloud services was $11.6 billion over the last 12 months.

During the period, IBM inked cloud deals with companies including Pratt & Whitney,Halliburton (HAL) and Kaiser Permanente, the Wall Street Journal noted.

For 2016, the company maintained its earnings per diluted share outlook of at least $13.50.

About 6.09 million of the company's shares changed hands so far today vs. its average 30-day volume of 3.44 million shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity.

The team believes its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: IBM

Loading ...