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IBM Plummets 18.6% on Earnings; Analysts Cut Rating

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IBM

(IBM) - Get International Business Machines (IBM) Report

was down 18.6% to 91 in early trading, its lowest level since last November. Big Blue reported third-quarter earnings per share of $1.08, meeting the

First Call/Thomson Financial

estimate and ahead of the year-ago 90 cents.

But the company's sales were below expectations and its revenue outlook disappointed analysts and investors.

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Merrill Lynch

cut its 12-month target to $130 from $144,

Goldman Sachs

removed the stock from its recommended for purchase list and

Prudential Securities

cut it to hold from accumulate.

Sanford C. Bernstein

said investors should not buy the stock now.