IBM Shares Are Falling Post-Market, As Revenue Comes In Light

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Photo: Wikimedia Commons

Shares of IBM are sliding by about 2% after hours after the company said that revenue had come in a bit light in Q2.A top-line of $26.1 billion is just below estimates of $26.3 billion.

That being said, the company has boosted its EPS slightly, from an estimate of $13.25 estimate previously to $13.35%.

And EPS did beat by about a few cents.

Some commentary from the announcement:

“In the third quarter, we drove revenue growth, margin expansion and increased earnings as a result of our innovation-based strategy and continued investment in growth initiatives,” said Samuel J. Palmisano, IBM chairman, president and chief executive officer. “Growth markets delivered outstanding revenue performance across software, hardware, and services and contributed to the company’s expanded margins. We also achieved strong results in Smarter Planet, business analytics and cloud.

The call should be interesting, especially to get a sense of how austerity is hurting service revenue.

This chart from the earnings presentation shows how public sector sales growth is the weakest of any end-user segment.


Photo: IBM

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