IBM focused on cost-cutting to make up for a revenue shortfall
IBM (NYSE:IBM) was rallying Thursday after reporting second-quarter results after the bell Wednesday.
Net income came to $3.9 billion, or $3.34 a share — the figure was up from $3.7 billion, or $3.30 a share, from the same period a year ago, and beat the Street’s estimates for $3.51 per share. However, revenues of $25.8 billion were lighter than expectations for $26.28 billion. Still, investors liked most of what they saw, and drove IBM up about 4% by midday.
Also helping was IBM’s improvements to full-year guidance. The company expects to earn $15.10 a share, up from the prior forecast of an even $15.
All in all, the company is focused on finding cost savings. IBM must not only deal with slowing growth in global markets, but also the headwinds from a stronger dollar. These factors are likely to continue to be a drag on revenues for the rest of the year.
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