IBM reported quarterly earnings that beat analysts’ estimates, but their revenues fell short of expectations, dropping for the thirteenth consecutive quarter.
The tech giant reported $20.81bn in sales, down 14.7 per cent over the year and lower than expectations of 20.9bn.
Adjusted earnings came in at $3.84 a share, just beating forecasts of $3.78 a share.
IBM’s share price slipped 4 per cent in after-hours trading.
Why it's interesting
As IBM’s turnaround continues, with the company refocusing from low-profit businesses such as cash register to focus instead on cloud computing, revenue has continued to drop, for the thirteenth consecutive quarter.
The tech giant’s software sales have been declining, although earnings beat expectations slightly for the second consecutive quarter.
It seems investors must continue to wait for the bottom in the company’s revenue drop.
What they said
Ginni Rometty, IBM chairman and chief executive:
We expanded margins, continued to innovate across our portfolio and delivered strong growth in our strategic imperatives of cloud, analytics and engagement, which are becoming a significant part of our business.
IBM’s slow turnaround could pay off in the long term, but for now the company continues to struggle with dropping sales and unprofitable businesses.