The American International Business Machines Corp (IBM) in the second quarter of 2022 increased its net profit by 5.1%, adjusted profit and revenue exceeded analysts’ expectations.
Meanwhile, experts expressed concern about the further consequences of the growth of the dollar for the financial performance of IBM, in connection with which its shares fell in price.
According to a press release from the company, net profit in April-June this year amounted to $1.392 billion compared to $1.325 billion in the same period last year. Earnings per share increased to $1.53 from $1.47.
Earnings excluding one-off factors were $2.31 per share, up from $2.23 a year earlier.
IBM’s quarterly revenue increased 9.3% to $15.54 billion from $14.22 billion.
Analysts surveyed by FactSet had, on average, forecast second-quarter adjusted earnings for IBM at $2.26 per share on revenue of $15.08 billion.
In the past quarter, IBM’s revenue in the software segment increased by 6.4% to $6.2 billion, in consulting revenue growth was 9.8% to $4.8 billion, in the infrastructure segment the indicator grew by 19% to $4.2 billion
The company retained its previous guidance for 2022 revenue growth of 4-6% (mid-single-digit growth), excluding the spin-off of the Kyndryl division and changes in foreign exchange rates. At the same time, IBM confirmed that it still expects a percentage increase in revenue by a number from the upper limit of the forecast.
The company’s shares fell 4.3% in additional trading on Monday.