A bad year for International Business Machines Corporation (IBM) just got even worse.
After the information technology reported disappointing third-quarter earnings report Tuesday, the stock tanked. IBM shares ended Wednesday down 7.62% at $134.05.
Sales declined 2.1% year-over-year to $18.8 billion, missing estimates of $19.1 billion, which still represents a decline. Earnings came in at $3.42 per share, actually beating estimates of $3.40. But it's the sales number the market was keying in on.
IBM's systems division saw a sales decline of 6% year-over-year, to $4.15 billion. Its cloud business, which has been losing to Microsoft Corporation's (MSFT) cloud business and Amazon.com Inc.'s (AMZN) Amazon Web Services, saw sales decline 2% to $8.3 billion.
TheStreet's tech columnist Eric Jhonsa says IBM shares don't have a bright outlook if it doesn't get sales moving again.
IBM has struggled not only this year -- down 13% -- but in the past several years as well. IBM is down almost 23% in the past five years.