IBM misses revenue estimates as hardware sales fall

International Business Machines Corp reported lower-than-expected quarterly revenue as the company struggles with falling demand for its storage and server products.

IBM shares fell about 4 percent to $189 in after-hours trade.

Total revenue fell 4 percent to $22.5 billion in the first quarter, below analysts’ average estimate of $22.91 billion.

Hardware revenue plunged 23 percent to $2.4 billion, while systems storage revenue also fell 23 percent.

[caption id=“attachment_76422” align=“alignleft” width=“380”]  AFP[/caption]

Only software business showed some growth, with revenue rising 1.6 percent to $5.66 billion.

Revenue in the Americas fell 4 percent, while revenue from Asia Pacific countries dropped 12 percent and declined 11 percent in emerging markets such as Brazil, Russia, India and China.

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The world’s largest technology services company’s net profit fell to $2.38 billion, or $2.29 per share, from $3.03 billion, or $2.70 per share, a year earlier.

On an adjusted basis, the company earned $2.54 per share, in line with analysts’ average estimate, according to Thomson Reuters I/B/E/S.

The stock, which gained 4.6 percent over the last three months, closed at $196.40 on the Nasdaq on Wednesday.

Reuters