This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IBM Beats Earnings Estimates, Misses on Revenue (Update 1)

IBM CEO Sam Palmisano's statement has been added to this story, along with the company's updated share price.

ARMONK, N.Y. ( TheStreet) -- IBM (IBM - Get Report) missed Wall Street's revenue estimate in its third-quarter results, released after market close on Monday, although earnings beat analysts' expectations.

IBM reports its third-quarter results after market close.

The tech bellwether brought in revenue of $26.16 billion, up from $24.3 billion in the same period last year. Analysts surveyed by Thomson Reuters were looking for revenue of $26.25 billion.

Excluding items, IBM earned $3.28 a share, up from $2.85 in the prior year's quarter. Analysts had predicted earnings of $3.22.

"In the third quarter, we drove revenue growth, margin expansion and increased earnings as a result of our innovation-based strategy and continued investment in growth initiatives," explained Sam Palmisano, the IBM CEO, in a statement.

IBM's software business, in particular, continues to enjoy strong growth. The tech bellwether's software revenue grew 13% year over year (or 8% adjusted for the effects of currency) to $5.8 billion.

The company's services business also enjoyed a good quarter, with revenue growing 8% (or 2% adjusted for the impact of currency) year-over-year to reach $10.3 billion.

IBM's hardware business was less robust, with revenue from the company's System & Technology Group rising 4%, (or 1% adjusted for the effects of currency) to hit $4.5 billion.

Investors were less than impressed by IBM's revenue miss, pushing the company's stock down $6.15, or 3.3%, to $180.44 in extended trading.

-- Written by James Rogers in New York

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
IBM $169.78 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs