IBM earnings Q2 2020

Arvind Krishna, SVP and Director at IBM Research, speaks on stage on 16 June 2016 during the 2016 Wired Business Conference in New York.

Brian Ach | Getty Images

Shares of IBM rose more than 6% on Monday after the company reported second-quarter earnings.

Here’s how the company did:

  • Income: $ 2.18 per share, adjusted, versus $ 2.07 per share expected by analysts, according to Refinitiv.
  • Revenue: $ 18.12 billion as expected by analysts, $ 17.72 billion according to Refinitive.

According to a statement, adjusted earnings per share were down 31% year-on-year and revenue declined 5%. This was the company’s second consecutive quarter of decline in revenue as coronoviruses affected the company’s results.

The company’s net income, which was $ 1.36 billion, was down 46%. However, the company improved gross margins in three of its five units, partly thanks to job cuts. IBM had a total gross profit margin of 48%, up from 45.1% in the first quarter and 47% in the year-ago quarter.

IBM did not update its full-year guidance. In April, IBM withdrew its guidance for the full year due to the epidemic.

IBM’s global technology services category had revenue of $ 6.32 billion, down nearly 8% year-over-year, and above FactSet’s consensus of $ 6.24 billion.

IBM’s cloud and cognitive software segment, which includes Red Hat, generated $ 5.75 billion in revenue. This is 3% and barely above the consensus of $ 5.74 billion factset.

The Global Business Services unit had revenue of $ 3.89 billion, down 7% and slightly higher than the consensus of $ 3.87 billion.

IBM announced cloud business from Movius and Prysmian Group this quarter, and it told the News and Observer newspaper in North Carolina that it was cutting several employees. And Arvind Krishna started a job as CEO of IBM on 6 April.

The executive will discuss the results with analysts on a conference call starting at 5 pm Eastern time.

IBM stock has fallen 5% so far this year, excluding after-hours moves.

This is breaking news. Please check back for updates.

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