Virginia Rometty
IBM stock was down as much as 6.8 percent at the beginning of trading Wednesday following revenue misses disclosed in its third quarter earnings report Tuesday. Its overall revenue was down 2 percent year over year.
The revenue dip did not come as much of a surprise to many analysts, who expected a decline for the quarter. But revenue still dropped below estimates of $19.10 billion to $18.76 billion. IBM beat earnings predictions by 2 cents per share, reporting $3.42 per share, excluding certain items.
Prior to this quarter, IBM had sustained three consecutive quarters of revenue growth, in part due to the introduction of a new mainframe computer, according to analysts. That period followed five straight years of year-over-year revenue declines.
Jordan Novet contributed to this report.
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