International Business Machines Inc.’s revenue declined even more than expected in a Tuesday earnings report, and shares slid in after-hours trading.
Revenue declined nearly $900 million, to $18.18 billion from $19.07 billion in the year-ago quarter. IBM IBM, +0.86% shares slid 1.3% after hours and was down 2.5% in premarket trade Wednesday.
The company reported first-quarter net income of $1.59 billion, or $1.78 a share, compared with $1.68 billion, or $1.81 a share, in the year-ago period. Adjusted earnings were $2.25 a share. Analysts surveyed by FactSet had forecast earnings of $2.22 a share on revenue of $18.47 billion.
Cognitive-solutions revenue and technology services and cloud-platform revenue declined to come in at $11.91 billion, while analysts surveyed by FactSet expected $12.43 billion. Technology services and cloud-platform includes IBM Cloud, formerly known as Bluemix.
Global business services revenue was flat at $4.12 billion, while analysts expected $4.19 billion. Global business services includes consulting for modernizing business design and enterprise and cloud applications.
Systems revenue fell to $1.33 billion, while analysts expected $1.37 billion. The systems business includes operating-systems software and the company’s mainframe business, including IBM’s z14 line of servers.
For the year, IBM reiterated its adjusted earnings outlook of “at least $13.90” a share, while analysts expect $13.91 a share.
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