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.