IBM stock closed down 7.63 percent 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.
