IBM (NYSE:IBM) reported mixed quarterly earnings results late today, which included a profit beat and a sales miss that played a role in its stock declining more than 2% after hours.
The IT company, based out of Armonk, New York, amassed sales of $18.18 billion for its first quarter of its fiscal 2019, dropping 5% compared to the year-ago quarter and missing the $18.46 billion that analysts called for, according to a survey conducted by Refinitiv.
IBM added that its earnings for the quarter came in at $2.25 per share, topping the $2.22 per share that Wall Street projected, per the Refinitiv consensus estimate. During the period, the business sold its mortgage-servicing brand, adding that it would reduce its business of offering working capital to certain types of IT organizations.
The company also changed its reporting structure for the quarterly report as it no longer has a Technology Services & Cloud Platforms segment. Now, IBM has Cloud & Cognitive Software and Global Technology Services business segments.
Its Global Technology Services segment brought in revenue of $6.88 billion, a 7% slide year over year–the business includes infrastructure and cloud services, plus tech support services. Its Cloud & Cognitive Software segment brought in revenue of $5.04 billion, down 1.5% year-over-year–this branch includes cognitive applications, cloud and data platforms, as well as transaction processing platforms.
For its 2019, IBM still sees its earnings at $13.90 per share, below the $13.91 per share that analysts predict, per Refinitiv.
IBM stock is down about 2.3% after the bell Tuesday off the heels of a revenue miss. Shares had been up 0.9% during regular trading hours.