RESEARCH TRIANGLE PARK – IBM beat the Street on revenue and earnings Tuesday yet shares fell 5 percent in after-hours trading after future guidance fell a bit below estimates.
Big Blue reported revenues of just over $19 billion, topping estimates by nearly $600 million according to expectations of analysts polled by Thomson Reutres.
IBM also reported year-over-year growth in revenue for the second consecutive quarter, adding to a reverse a 5-year trend of declines.
Earnings came in at $2.45, 3 cents better than expected by Thomson Reuters.
“In the first quarter we maintained momentum in our business, with reported revenue growth in total and across our major segments,” said Ginni Rometty, IBM chairman and chief executive officer, in a statement. “These results reinforce that our clients value our innovative technologies, our industry expertise and our commitment and actions for the responsible stewardship of their privacy and data. This is also reflected in our leadership positions in enterprise cloud, AI and security.”
IBM operates one of its largest corporate campuses in RTP and employs several thousand people across North Carolina.