IBM shakes off the Big Blues

IBM PCBiggish Blue has surprised the cocaine nose jobs of Wall Street by making a bob or two more than expected.

The company had been in the doldrums despite more restructuring than you can poke a stick at and all the sell offs of the family silver that it could manage.

These figures show that the company’s shift to high-growth areas such as cloud-based services is finally getting results.

IBM also stood by its full-year forecast for adjusted earnings of at least $13.50 per share, dispelling any concerns Brexit having an effect on the outfit.

Biggish Blue receives nearly a third of its revenue from Europe, Middle East and Africa.

Chief Executive Ginni Rometty’s push toward cloud-based services, security software and data analytics seems to have paid off with a 12 percent rise in revenue from “strategic imperatives” in the second quarter.

Cloud revenue jumped 30 percent, compared with 34 percent in the preceding quarter.

Total revenue dropped 2.8 percent to $20.24 billion for the quarter ended June 30 from a year earlier, hurt by a fall in its traditional hardware businesses.

The company’s global business services revenue, which includes consulting, fell 2 percent, while its systems unit, which includes systems hardware, dropped 23.2 percent.

However, the company’s 17th straight quarterly revenue decline was not as steep as expected. The average analyst estimate was $20.02 billion. It is seen that the company really is turning around.

Net income fell to $2.50 billion, or $2.61 per share, from $3.45 billion, or $3.50 per share.