IBM Earnings: IBM Stock Slides as Q1 Revenue Falls 5%, Misses Guidance

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IBM (NYSE:IBM) reported mixed quarterly earnings results late today, which included a profit beat and a sales miss that played a role in its stock declining more than 2% after hours.

IBM earnings

Source: IBM

The IT company, based out of Armonk, New York, amassed sales of $18.18 billion for its first quarter of its fiscal 2019, dropping 5% compared to the year-ago quarter and missing the $18.46 billion that analysts called for, according to a survey conducted by Refinitiv.

IBM added that its earnings for the quarter came in at $2.25 per share, topping the $2.22 per share that Wall Street projected, per the Refinitiv consensus estimate. During the period, the business sold its mortgage-servicing brand, adding that it would reduce its business of offering working capital to certain types of IT organizations.

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The company also changed its reporting structure for the quarterly report as it no longer has a Technology Services & Cloud Platforms segment. Now, IBM has Cloud & Cognitive Software and Global Technology Services business segments.

Its Global Technology Services segment brought in revenue of $6.88 billion, a 7% slide year over year–the business includes infrastructure and cloud services, plus tech support services. Its Cloud & Cognitive Software segment brought in revenue of $5.04 billion, down 1.5% year-over-year–this branch includes cognitive applications, cloud and data platforms, as well as transaction processing platforms.

For its 2019, IBM still sees its earnings at $13.90 per share, below the $13.91 per share that analysts predict, per Refinitiv.

IBM stock is down about 2.3% after the bell Tuesday off the heels of a revenue miss. Shares had been up 0.9% during regular trading hours.

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