Earnings Results: IBM stock slips after revenue misses Street view

This post was originally published on this site

International Business Machines Inc. shares declined in the extended session Wednesday after the tech giant reported less revenue than Wall Street expected.

IBM IBM, -0.62%  shares fell 3.3% after hours, following a 0.6% decline in the regular session to close at $142.11. In comparison, the Dow Jones Industrial Average DJIA, -0.08%  closed down 0.1%, the S&P 500 SPX, -0.20%  declined 0.2% and the tech-heavy Nasdaq Composite Index COMP, -0.30%  dipped 0.3%.

The company reported third-quarter net income of $1.67 billion, or $1.87 a share, compared with $2.69 billion, or $2.94 a share, in the year-ago period. Adjusted earnings were $2.68 a share.

Revenue declined to $18.03 billion from $18.76 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of $2.66 a share on revenue of $18.23 billion.

The company reported cloud and cognitive software revenue — which includes Red Hat — of $5.28 billion while analysts had been looking for $5.43 billion. Global technology services posted $6.7 billion in revenue compared with the $6.77 billion Street consensus.

Global business services revenue was $4.12 billion, in-line with expectations, and systems revenue was $1.48 billion while the Street expected $1.52 billion.

IBM expects adjusted earnings of “at least $12.80” for the year, while the Street expects $12.80.