Shares of information technology company, International Business Machines Corp. (IBM) dropped on Friday morning following its first quarter results which came in below analysts estimates.
The Armonk, NY based company reported first quarter profits of $3.03 billion, or $2.70 per share, down from $3.07 billion, or $2.61 per share last year. Excluding special items, EPS rose to $3, from $2.78 last year, but fell below analysts estimate of $3.05.
A decline in government and consumer spending caused revenue for the quarter to decline -5% to $23.41 billion, from $24.67 billion last year. Revenue fell far below analysts estimate of $24.69 billion.
IBM, which is the worlds largest computer services company, saw a -4% drop in global technology services to $9.61 billion and a -3% decline in global business services to $4.48 billion.
Despite the negative results, IBM has reaffirmed its FY2013 outlook of $15.53 per share and operating earnings of at least $16.70 per share. Analysts are expecting to see earnings of $16.77 per share.
IBM shares were down -$9.15, or -4.42% during premarket trading Friday. The stock has been mostly flat in the past year.
The Bottom Line
Shares of International Business Machines Corp. (IBM) have a 1.64% yield, based on Thursday’s closing price of $207.15.
International Business Machines Corp. (IBM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.