Credits: Canva
By: Aquib Nawab
Finance
IBM, a big technology company, made a lot of people happy when its stock price went up by 11%. That's the most it's gone up in a long time. It happened because IBM's financial results for the last part of 2023 were much better than what experts expected.
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IBM made more money per share (EPS) than experts predicted. They got $3.87 when people thought it would be $3.78. IBM's total earnings were also higher than expected, $17.38 billion instead of $17.30 billion. They even made 4% more money than they did the year before.
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IBM's profit margin was the highest it's been since 1999. That's because they earned more money from their software and consulting services. They also did really well in the field of artificial intelligence (AI).
Credits: Wired
IBM thinks it will have $12 billion in free money and make more money next year. Over the last year, IBM's stock price went up by 38%.
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American Airlines had a nice surprise too. Their stock price went up by 8% after they shared their earnings news.
Credits: American Airlines
American Airlines made more money in the last part of 2023 than people expected. They earned 29 cents per share when experts thought it would be just 11 cents. Their total earnings were $13.10 billion, better than the $13 billion people predicted.
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American Airlines also did a good job of filling up their planes. They had more passengers than expected.
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In the year ahead, American Airlines thinks they will earn between $2.25 and $3.25 for each share of their stock. That's better than what experts thought, which was $2.14. They are doing well because people are flying more, especially during holidays.
Credits: Entrepreneur
ServiceNow, a company that helps other businesses with their work, did really well too. Their stock price went up because people were excited about their earnings.
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ServiceNow made more money per share ($3.11) than experts expected ($2.78). They also earned $2.437 billion in just three months, which is 26% more than the same time last year.
Credits: ERP Today
ServiceNow did so well partly because they made new AI software. This software helped their clients with their work.
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ServiceNow thinks they will keep making more money. In the first part of 2024, they expect to earn between $2.510 billion and $2.515 billion. For the whole year, they think they will make between $10.555 billion and $10.575 billion, which is 22% more than last year.
Credits: Unsplash