IBM beats estimates but revenues fall

 
Helen Cahill
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It was the 19th quarter in a row that revenues fell at the company (Source: Getty)

IBM beat estimates with its fourth-quarter results, but its shares fell in after-hours trading as it posted its 19th drop in revenues in a row.

The figures

IBM reported overall fourth-quarter revenue of $21.8bn (£17.7bn), down one per cent year-on-year. However, revenue for cloud services jumped 33 per cent to $4.2bn.

Read more: Bank of America falls in line with trend of strong US bank results

The computing giant's diluted earnings per share came in at $4.73, up three per cent year-on-year, beating Wall Street estimates.

Net income grew one per cent to $4.5bn.

What IBM said

Martin Schroeter, IBM senior vice present said: "In 2016, we again made substantial capital investments, increased our R&D spending and acquired 15 companies - a total of more than $15bn across these elements.

"The acquisitions further strengthened our capabilities in analytics, security, cognitive and cloud, while expanding our level of industry expertise with additions such as Truven Health Analytic and Promontory Financial Group."

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