IBM: Is Big Blue Set for Sustained Growth?

Earnings season has generally not been kind to IBM's (NYSE: IBM) stock. In the last two years, IBM's share price has fallen more than it's risen following its earnings report. The most recent quarterly report has been an exception, with the stock rising over 3% during the trading day following the report.

Is this an aberration or could it be the start of a trend?

On the surface, IBM's fourth-quarter results provided cause for optimism. Both revenue and earnings outperformed expectations, with revenue growing 0.1% -- breaking a streak of five quarters where revenue declined year over year. Cloud revenue, a strategic focus for the tech company, rose 21% helping drive a 190-basis point improvement in gross profit margins. Nor was the outperformance limited to the current quarter -- the company raised its adjusted earnings per share estimates for 2020 from $12.80 to $13.35.

Source Fool.com