Investing.com – IBM (NYSE:) reported third-quarter that beat analysts’ expectations on Wednesday, but revenue that fell short of forecasts.
The company reported earnings per share of $2.68 on revenue of $18.03 billion. Analysts polled by Investing.com forecast EPS of $2.67 on revenue of $18.23 billion. That compared to EPS of $3.42 on revenue of $18.76 billion in the same period a year earlier.
Profit was helped by IBM’s high-margin cloud computing business.
IBM (NYSE:) shares lost 2.53% to trade at $138.45 postmarket.
The Armonk, New York-based technology services giant, which wrapped up the mega cloud merger with Linux maker Red Hat Inc (NYSE:) earlier this year, has faced years of revenue declines in the process of shifting focus to the cloud from traditional business.
Ginni Rometty, IBM (NYSE:) chief executive for more than seven years, has been able to steer the company towards fast-growing cloud-computing business and lower its dependence on its traditional hardware products, but not without a bumpy journey. The newer areas of focus have sometimes underwhelmed investors.
IBM’s global technology services segment, the company’s biggest, reported $6.70 billion in revenue, down 5.6% from a year earlier.
— Reuters contributed to this report.
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