IBM Beats Q2 Earnings on AI Growth: ETFs to Buy
After the closing bell on Jul 24, International Business Machines (NYSE: IBM) reported strong second-quarter 2024 results. It beat estimates for earnings and revenues, citing rising customer demand for new AI projects. IBM shares spiked 4% in aftermarket hours.
Investors seeking to tap the strength could consider ETFs having the highest allocation to this tech giant. These funds are First Trust NASDAQ Technology Dividend Index Fund (NASDAQ: TDIV), FT Cboe Vest Technology Dividend Target Income ETF, FT Cboe Vest DJIA Dogs 10 Target Income ETF (BATS: DOGG), Invesco Dow Jones Industrial Average Dividend ETF (ARCA:DJD) and Morningstar Dividend Leaders Index Fund (ARCA:FDL).
IBM’s second-quarter earnings per share came in at $2.43, surpassing the Zacks Consensus Estimate of $2.16 and improving from the year-ago earnings of $2.18. Revenues grew 2% year over year to $15.8 billion and edged past the consensus estimate of $15.6 billion.
Consulting revenues dipped 1% in the quarter, while software revenues grew 7% from the year-ago levels. IBM is capitalizing on the growing demand for AI integration. The company’s book of business for generative AI has grown to more than $2 billion since the launch of watsonx one year ago.
IBM reaffirmed its full-year guidance for mid-single-digit revenue growth for 2024.
The 113-year-old company expects software revenues to grow at a high-single-digit percentage in 2024, above the previous forecast of the …
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