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Gains all across the board for IBM

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Miguel A. Rodriguez
Miguel A. Rodriguez
22 April 2021
International Business Machines (IBM) reported first-quarter 2021 figures that came in better than estimated

The company revealed an adjusted EPS of $1.77 on revenues of $17.73 billion. The market was looking for an EPS of $1.63 and revenues of $17.35 billion. The latter grew 0.9% on an annualized basis in the quarter. It is the first time in four quarters when IBM reported revenue growth.

The company’s Global Technology Services segment, responsible for services, outsourcing and support, accounted for most of the quarter’s overall revenue - $6.37 billion. By the end of 2021, IMB plans to spin off part of the segment as a standalone company called Kyndryl. Even though it contributed the least to the overall revenue, the Systems segment, in charge of deals with mainframe computers and other hardware, grew 4% to $1.43 billion compared to the previous figures.

Moreover, IBM announced that it purchased 7Summits, Taos, two consulting firms, and cloud migrations in the quarter. Also, it sold 250 patents to Instacart.

IBM closed the Wednesday session 3.90% higher. Since the beginning of the year, its stock price went up around 6%, while USA500 gained almost 11%.

Sources: cnbc.com, reuters.com, finance.yahoo.com              

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.