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IBM rises 4% after exceeding forecasts with its quarterly results

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International Business Machines (IBM) up 4% in the 'after hours' market of Wall Street, which records operations after the close of the regular session, after exceeding consensus forecasts with its fourth quarter results.

The earnings per share (BPA) of $ 4.11 has exceeded the consensus forecast of $ 4.08. And the income 21,780 million have exceeded the anticipated 21,600 million. The quarterly net profit has been 3,700 million of dollars and the gross margin of 51%, an improvement of almost 2 points compared to the same period last year.

Investors value that the tech giant has managed to contain the downward path of his income thanks to a significant improvement in your business sales of cloud computing. This division has increased its revenues by 21%, up to 6,800 million dollars, something that has been very well valued by the market.

IBM bought the Linux manufacturer in 2019, Red hat, for 34,000 million dollars, its biggest acquisition to date, to expand its subscription software business and offset the fall in software sales and the decrease in demand for servers. In this regard, Red Hat revenues have skyrocketed 24% in the quarter.

By 2020, IBM has anticipated a BPA of "at least $ 10.57" and a free cash flow (FCF) of "approximately $ 12.5 billion"." We finished 2019 solidly, returning to overall revenue growth in the quarter, led by accelerated cloud performance, "he said. Ginni Rometty, president and executive director.

"Looking to the future, this positions us for a sustained revenue growth in 2020 as we continue to help our clients change their mission-critical workloads to the hybrid cloud and scale their efforts to become a cognitive enterprise, ”he added.

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