The IBM shareholders rejoiced during the Thursday trading session as they witnessed a significant rise in share prices. The latest boost to IBM share prices came as the company shared its Q3 earnings.
It was on Wednesday when IBM officials posted the earnings generated in the third quarter. It was a remarkable sight for the shareholders as they got to see that IBM had generated strong earnings.
Earnings Reported by IBM
The officials at the technology conglomerate reported that their earnings were stronger than the estimations made by the analysts.
Based on the earnings generated in the third quarter, IBM has increased its projection for the entire year.
IBM officials have confirmed that they have generated earnings of $1.81 per share. The revenue they generated for the third quarter was $14.11 billion.
Compared to the generated earnings, the estimation that the Refinitiv analysts made for the earnings was $1.77 per share. The revenue they had estimated for the respective quarter was $13.51 billion.
IBM has confirmed that compared to Q3 2021, its revenue has surged by 6.5%.
After posting promising earnings, the share prices for IBM have surged by 6%.
Full Year Guidance Figures have been Increased
Arvind Krishna, the chief executive officer at IBM also made a statement surrounding the company’s performance.
Krishna stated that they are glad their company has generated strong gains in the recent quarter. It is all because of their teams who have continued working hard, meeting customers’ demands.
Their hard work has paid off in a way that they hardly felt the impact of the macroeconomic downfalls.
Krishna stated that they are looking at a bright future for their company and expect their earnings would surge significantly in the fourth quarter.
In light of the recent earnings, IBM has decided to uplift the full-year expectations and expects their sales and revenues would continue growing.
Forex to Impact Revenue
IBM also revealed that due to the foreign exchange rates, they are going to witness a drop in revenue figures. The company has revealed that its revenue would be down 7% due to the forex rates.
Krishna commented on the dropping value of the USD in the market, which would eventually impact their profits and revenues.
He added that the dollar has been losing its value in the market and therefore, their revenue would be impacted on a large scale.
It was during the conference call with the analysts that Krishna talked about the future performance of their company.
Krishna did add that despite the increased guidance figures, they do expect a decline in demand in the European market. For the lack of demand, he cited the growing inflation rates and the energy crises in Europe.