Big Blue was seeing its stock flash red after the closing bell as investors took IBM (IBM - Get Report) to task for falling short of Wall Street's revenue expectations in its latest quarter.
The Dow component reported an adjusted profit of $4.2 billion, or $3.62 a share, up from 10% from a profit of $3.28 a share in the prior year's quarter, and a penny ahead of the consensus view.
But revenue came in at of $24.75 billion in the September-ended quarter, down from $26.16 billion in the same period last year, and below the analysts' estimate of $25.36 billion. Currency negatively impacted IBM's revenue by nearly $1 billion in the latest period. The company also acknowledged on its conference call that business fell off in the final month of the quarter in both North America and its growth, or emerging, markets businesses.
The stock was last quoted at $203.75, down 3.4%, on volume of 1.13 million, according to Nasdaq.com.Other stocks making a splash in late trades were Fortinet (FTNT - Get Report), which was down nearly 17% on volume of more than 800,000 after the Sunnyvale, Calif.-based network security company reported in-line results for the third quarter but gave a lower outlook for full year, according to Reuters; and Cree (CREE - Get Report), whose shares rose more than 7% on volume of more than 200,000 after the Durham, N.C.-based maker of LED lighting products topped Wall Street's view for its first-quarter earnings by a penny. -- Written by Michael Baron in New York.
>To contact the writer of this article, click here: Michael Baron.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts