IBM stock (NYSE:IBM) was down after the bell on Tuesday as the tech giant unveiled its latest quarterly earnings results late in the day, posting revenue that was below what Wall Street was calling for in its consensus estimate.
The tech company said that for its third quarter of fiscal 2018, its revenue amounted to $18.76 billion, which is below the $19.10 billion that analysts were calling for, according to data compiled by Refinitiv. The company added that its overall revenue was below compared to the year-ago period, falling 2% year-over-year.
Analysts were expecting IBM’s sales to decline as the company had posted five years of revenue declines before reversing this trend and showing revenue growth for three consecutive quarter.. The company added that its earnings was above the mark at $3.42 per share on an adjusted basis when excluding certain items as the Wall Street consensus estimate asked for adjusted earnings of $3.40 per share, according to Refinitiv.
The company’s biggest segment, its Technology Services and Cloud Platforms, brought in revenue of $8.3 billion. Analysts saw this figure as being $8.43 billion, according to data compiled by FactSet.
IBM’s Cognitive Solutions business segment amassed $4.1 billion in revenue, which was also below the $4.3 billion that analysts were calling for. The company’s Global Business Services raked in revenue of $4.1 billion, which was ahead of the $4.06 billion that FactSet was calling for.
IBM stock is down about 4% after the bell on Tuesday following the company’s quarterly revenue miss. During regular trading hours, the company’s stock was up about 2.8%.