2018.01.1820:11:00UTC+00IBM Swings Back to Profit

International Business Machine Corp.'s revenue increased for the first time in 23 quarters and surpassed analysts' estimates as the firm's redirection of its focus into profitable business units began to deliver results.

However, its shares fell four percent in after hours trading following a recent rally. In October, the firm had issued a guidance regarding a possible return to growth and since then the company's stock has gained around 16 percent, including a rally of around 10 percent since the beginning of 2018.

IBM's quarterly profit, which does not include a charge related to the U.S. tax overhaul recently signed into law, just topped analysts projections. The firm did not disclose exact details regarding the anticipated impact of the new tax law on the current year's fiscal results.

In recent years, the company has focused its attention in high-margin “strategic imperatives" such as cloud computing, cyber security, mobile and data analytics that flow across its five business divisions in order to offset a slump in its legacy hardware and software business.

The move has helped its revenue decline to slowdown in recent quarters and finally returned to growth in the previous quarter. Wall Street anticipates IBM's revenue to increase in the current quarter and the next quarter as well.