IBM stock slips on disappointing consulting and infrastructure revenue
IBM's critical software category performed well due to Red Hat's gains, but the consulting and infrastructure segments pulled down overall results.
IBM shares moved 3% lower in extended trading on Wednesday after the hardware, software and consulting provider fell short of Wall Street's revenue expectations for the third quarter.
Here's how the company did in comparison with LSEG's consensus:
Earnings per share: $2.30 adjusted vs. $2.23 expected
Revenue: $14.97 billion vs. $15.07 billion expected
IBM's overall revenue increased 1.5% year over year, according to a statement. It had a net loss of $330 million, or 36 cents per share, compared with net income of $1.70 billion, or $1.84 per share, in the year-ago quarter. IBM swung to a loss after a one-time pension settlement charge tied to an agreement with Prudential.
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