IBM Shares Drop Despite Beating First-Quarter Expectations
Short-circuited.
International Business Machines Corp. (IBM) - Get International Business Machines Corporation Report shares were falling Tuesday after Big Blue beat first quarter earnings and revenue expectations.
The company beat estimates, reporting diluted earnings per share of $2.45 compared to analysts' prediction of $2.42 on a non-GAAP basis. The company reported revenue of $19.1 billion compared to estimates of $18.8 billion.
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"The multi-year shift in our investment strategy is paying off as IBM leads in the emerging, high-value segments of the enterprise IT industry," said James Kavanaugh, IBM senior vice president and chief financial officer.
But the company also announced that it expects to see non-GAAP earnings per share of at least $13.80 over the course of 2018, while analysts had anticipated $13.83 per share.
Shares were down 5.4% after hours after closing at $160.91, up 1.91% during regular trading. Since the beginning of the year, IBM shares have slid 0.3%.
