Technology and consulting giant IBM (IBM) offered Wall Street a mixed bag with its latest quarterly results. Investor weren’t happy with the numbers and the company’s shares plunged about 7% in Thursday morning trading.
Third quarter earnings climbed 6% from $3.82 billion last year, to $4.04 billion. Adjusted EPS came in at $3.99, which topped the $3.96 that analysts had forecast, the Associated Press notes.
The company reiterated its earlier forecast of annual adjusted profits of at least $16.90 a share, which is slightly higher than the $16.87-a-share consensus among analysts.
But the company missed on revenue, posting sales of $23.7 billion, down 4% from $24.7 billion during the same period last year, and below the $24.8 billion that Wall Street had expected.
Especially worrisome to investors was a steep drop in hardware sales, which plunged 17% during the quarter. IBM earnings from its equipment division have declined by $1 billion through the third quarter of this year, Reuters noted.
Last week IBM lost a court battle challenging a $600 million cloud computing contract between the Central Intelligence Agency and Amazon (AMZN).