IBM (NYSE: IBM) saw its shares climb the charts Tuesday, a day after trumpeting third-quarter 2020 earnings results.
The company known as "Big Blue" announced GAAP EPS from continuing operations of $1.89. Operating (non-GAAP) EPS was $2.58
Revenues were $17.6 billion, down 2.6%. Cloud & Cognitive Software revenue up 7%. Total cloud revenue was $6.0 billion, up 19%. Total cloud revenue was $24.4 billion over the last 12 months, up 22%.
Red Hat revenue was up 17%, normalized for historical comparability. GAAP gross profit margin proved to be 48%, up 180 basis points; Operating (non-GAAP) gross profit margin of 49%, up 160 basis points
Net cash from operating activities of $15.8 billion and free cash flow of $10.8 billion, over the last 12 months.
CEO Arvind Krishna commented, "The strong performance of our cloud business, led by Red Hat, underscores the growing client adoption of our open hybrid cloud platform.
"Separating the managed infrastructure services business creates a market-leading standalone company and further sharpens our focus on IBM's open hybrid cloud platform and AI capabilities. This will accelerate our growth strategy and better position IBM to seize the $1-trillion hybrid cloud opportunity."
Consolidated diluted earnings per share was $4.72 compared with $6.45 per diluted share for the 2019 period, a decrease of 27%.
Consolidated net income was $4.2 billion, down 27% year to year. Revenues for the nine-month period ended September 30, 2020 totaled $53.3 billion, a decrease of 4% year to year compared with $55.4 billion for the first nine months of 2019.
IBM shares sank $8.19, or 6.5%, to $117.33.
