IBM stock was down 2 percent on Tuesday after it disclosed earnings for the second quarter of the year, falling short of revenue estimates but beating earnings estimates.
The company will start its call with financial analysts at 5 p.m. Eastern time.
- EPS: Excluding certain items, $2.97 in earnings per share vs. $2.74 in earnings per share as expected by analysts, according to Thomson Reuters.
- Revenue: $19.29 billion vs. $19.46 billion as expected by analysts, according to Thomson Reuters.
Revenue was down year over year for the 21st quarter in a row, off by more than 4 percent. Analysts had expected that outcome, as CNBC’s Deirdre Bosa reported earlier on Tuesday.
IBM reiterated its guidance of at least $13.80 in earnings per share for the full year of 2017, in line with its guidance from the first quarter. Analysts had expected guidance of $13.68 per share.
Revenue from IBM’s strategic imperatives of analytics, cloud, mobile, social and security was $8.8 billion, IBM said in a statement. Strategic imperatives now contribute 45 percent of IBM’s total revenue, up from 42.8 percent in the first quarter, IBM said. Cloud revenue, including cloud delivered as a service, for the quarter was $3.9 billion, up 14 percent from last year.
During the second quarter, IBM announced the opening of four cloud data centers, a partnership with Lightbend, and the acquisition of Timetoact Group’s XCC digital workplace hub.
Also in the quarter, CNBC reported that Facebook was looking to move WhatsApp off of IBM’s cloud and onto its own in-house data center infrastructure.
IBM stock has dropped more than 7 percent since the beginning of this year.
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