IBM quarterly sales fall short of expectations
Shares of IBM Corp. fell 4% in after-hours trade Tuesday after the company reported year-over-year revenue and earnings declines. The PC-turned-software company reported first-quarter net income of $1.75 billion, or $1.85 a share, compared with $2 billion, or $2.09 a share, in the year-earlier period. Excluding one-time items, IBM reported earnings of $2.38 a share, topping the FactSet consensus estimate of $2.35. Revenue for the three-month period fell to $18.16 billion from $18.7 billion last year, and missed the Street estimate of $18.4 billion. That was despite a 60% improvement in its software-as-a-service business. IBM maintained its fiscal 2017 outlook calling for earnings of at least $13.80 a share. Analysts surveyed by FactSet are projecting full-year earnings of $13.77 a share. IBM's shares traded down around $163.34 in after-hours trade. They've recently underperformed both the Dow Jones Industrial Average and S&P 500 . The stock gained 2% in the past three months and 12% in the past year, while the Dow 30 gained 4% in three and 14% in the past year.
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