IBM Shares Plunge Despite Earnings and Revenues Above Forecasts

Shares of International Business Machines Corp (IBM) lost 2.4 percent at $162.80 after topping 52-week highs in late trading Thursday after the company reported its 19th straight quarter of declining revenue.

The New York–based enterprise technology company posted quarterly earnings and revenues above analyst estimates. Excluding items, IBM earned $5.01 per share on revenues of $21.77 billion, beating analysts’ average estimate of $4.88 per share on revenue of $21.64 billion in the fiscal fourth quarter.

However, compared to one year ago, IBM’s revenue fell 1.3 percent in the quarter ended Dec. 31 as income from newer areas such as cloud-based services and analytics failed to offset declines in IBM’s core business, such as hardware and services.

Still, for the coming year, IBM forecast $13.80 adjusted earnings per share, above the $13.48 per share expected by analysts.

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