IBM’s Q1 2024 Earnings Report Surpasses EPS Expectations

International Business Machines (NYSE:IBM) reported its first quarter 2024 results, showing positive financial outcomes. The company’s revenue increased by 1.5% from the first quarter of 2023, reaching US$14.5 billion. Net income also saw a significant growth of 69% compared to the same period last year, totaling US$1.57 billion. The profit margin improved to 11%, up from 6.6% in the first quarter of 2023, mainly due to lower expenses. Additionally, earnings per share (EPS) rose to US$1.72, up from US$1.03 in the first quarter of 2023.

IBM’s EPS exceeded analyst expectations by 32%, indicating stronger performance than anticipated. Looking ahead, the company is projected to achieve an average annual revenue growth rate of 3.9% over the next three years. This growth rate is lower than the 9.3% forecasted for the IT industry in the US.

Despite the positive financial results, IBM’s shares have experienced a 6.9% decrease over the past week, reflecting market volatility and investor sentiment. It is important to consider potential risks associated with investing in IBM. Identifying warning signs and assessing risks can help investors make informed decisions.

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