IBM released Q1 earnings

IBM released Q1 earnings

Monday was an important day for IBM, as it released its financial reports. The results exceeded the expectations and made the market volatile after-hours.

IBM reported an EPS (Earning per Share) of $1.84 and revenue of $14.6 billion, with a 3.4% decline since last year. The expectations regarding the earning per share were topped, but the same does not apply to the revenue, which initially was $17.62 billion.

The share price was at $118.95 after-hours.

The recent purchase of the Red Hat subsidiary was an inspired move for the latter, as its revenue rose by 18%.

The company ended the quarter with $12 billion cash at hand.

Of course, the current global situation influenced both IBM and USA500. IBM dropped 17% since the virus became pandemic, while USA500 lost 17.5% with a 7.5% drop in just one day, February 9. But comparing the current data with the one from the financial crisis in 2008-2009, at that time, IBM declined more than 21%, and USA500 lost 50%.

Of course, IBM is not the only one specialized in storing data in private servers. Among its competitors are Microsoft and Amazon, both of which are due to release their earnings reports this month, on April 29 and April 30, respectively.

Microsoft will release its report also after-hours. The EPS forecast is $1.27. It is higher than the one for the same quarter last year of $1.14. The revenue forecast is $34.05 billion.

Amazon follows the example of its rivals and will release the report after-market. The EPS for this year is lower than the one for the same quarter last year at $6.35. Last year was $7.09. The revenue forecast is $72.68 billion.

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Sources: forbes.com, thestreet.com, nasdaq.com, investing.com

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