IBM (IBM) - Get International Business Machines (IBM) Report shares fell in after-hours trading on lighter-than-expected first-quarter revenue and mixed guidance from the software and services company.
The stock fell 2% to $141.75 a share in post-market trading Tuesday, after having risen 0.65% in regular hours.
Earnings per share for the first quarter of came in at $1.78 on an GAAP basis, missing Wall Street's estimate of $1.80. Adjusted EPS did come in at $2.25, beating estimates of an adjusted $2.22. Revenue was $18.2 billion, missing analysts expectations of $18.44 billion. The GAAP earnings result was a 2% decline year-over-year. The revenue number was a 4.7% year-over-year decline.
"In the first quarter, our cloud revenue growth accelerated, and we again grew in key, high-value areas in Cloud and Cognitive Software and in consulting," said Ginni Rometty, chairman, president and chief executive officer. "IBM's investments in innovative technologies coupled with our industry expertise and our commitment to trust and security position us well to help clients move to chapter two of their digital reinvention."
Management guided for 2019 GAAP EPS of $12.45, above Wall Street's expectations of $12.31, but adjusted EPS of $13.90, below analysts projections for $13.91.
The stock is up 26% year-to-date.