IBM Earnings and Revenue Fall Short
IBM reported quarterly earnings and revenue that came in short of analysts' expectations on Thursday.
After the earnings announcement, the tech company's shares fell in after-hours trading. What is IBM's stock doing now? (Click here to get the latest quote.)
Net income fell 1.1 percent to $3.03 billion, or $2.70 a share, from $3.07 billion, or $2.61 a share, in the year-earlier period.
Excluding items, the company's earnings were $3 a share, up from $2.78 a share a year ago.
Revenue decreased 5 percent to $23.41 billion from $24.67 billion a year ago.
Analysts had expected the IBM to report earnings ex-items of $3.05 a share on revenue of $24.62 billion, according to a consensus estimate from Thomson Reuters.
"Despite a solid start and good client demand we did not close a number of software and mainframe transactions that have moved into the second quarter," said IBM CEO Ginni Rometty in a statement. "The services business performed as expected with strong profit growth and significant new business in the quarter."
Chief Financial Officer Mark Loughridge said on a conference call that weakness in the Japanese yen hurt the quarter's results. A weak yen translates to fewer dollars for IBM on sales in Japan.
IBM kept its full-year guidance intact: It still expects adjusted, per-share earnings of at least $16.70 for 2013. Analysts currently expect $16.77 a share.