International Business Machines Corp. (NYSE: IBM) on Tuesday announced third-quarter revenue that missed analysts’ estimate, sending its shares down more than 7%.
The computing giant said revenue fell 2% to USD 18.8 Billion in the quarter ended September 30, falling short of analysts’ estimates of USD 19.1 Billion.
Excluding certain items, third-quarter earnings per share was $3.42, beating analysts’ estimate by 2 cents.
IBM has been struggling to fuel its revenue growth. The company still need time to prove its turnaround plan and refocus on new lines of business. Revenue of strategic imperatives sector, which including cloud computing, data analytics and other fast-growing business, came at USD 39.5 Billion over last 12 months, up 12%.
Revenue of cognitive solutions fell 5% (adjusting for currency) to USD 4.1 Billion. While global business service, includes consulting, application management and global process services, rose 1% to USD 4.1 Billion, driven by improved gross profit margin.
“IBM’s progress and momentum this year in the emerging, high-value segments of the IT industry are driven by our innovative technology, deep industry expertise and commitment to trust and security,” said Ginni Rometty, IBM chairman, president and chief executive officer. “Our leadership in the technology and services that deliver hybrid cloud, AI, blockchain, analytics and security has helped drive our overall performance, and is helping our clients unleash the full business value of these innovations.”
IBM shares fell as much as 7.4% to $134.38 per share in the early trading on Wednesday, hitting a new 52 week low. The stock fell over 12% this year.
The Company now expects operating (non-GAAP) diluted earnings per share of at least $13.80 for 2018.