NEW YORK (TheStreet) -- Shares of (IBM - Get Report) are down by 0.28% to $159.42 in early afternoon trading today, as analysts take a closer look at yesterday's second quarter 2016 earnings report.

Toni Sacconaghi, Senior Analyst at Sanford Bernstein, thinks that digging deeper into IBM's report reveals a pessimistic outlook.

"Yes, they beat consensus revenues, but for me, the business actually got a little bit worse this quarter. Revenues were down on a like-for-like basis despite the fact that the comparison was equal," Sacconaghi said on CNBC's "Halftime Report" Tuesday.

IBM's earnings per share "were a little light" after removing the sale of its software business and Sacconaghi says "consensus really didn't capture the impact of acquisitions on numbers." He called today's trading on IBM a tug in the marketplace. Sacconaghi believes that the current environment reflects the weakening outlook of the blue chip stock. He has a "market perform" rating on IBM. 

"IBM provided guidance for Q3. And for IBM to make its full year guidance, Q4 needs to be the best ramp in the last 10 years. It's certainly possible, but those aren't great Vegas odds," Sacconaghi added.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. The team believes its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: IBM