IBM Misses Q1 Estimates; Stock Falls

International Business Machines

released its fiscal first-quarter earnings results after the closing bell on Thursday. The company missed both Wall Street earnings and revenue estimates, sending the stock down almost 4 percent in late trading to $199.48. IBM reported net income for the first-quarter of $3.03 billion or $2.70 per share, compared to $3.07 billion or $2.61 per share, in last year's corresponding period. On an adjusted basis, which is comparable to analysts' consensus, the company reported net income of $3.38 billion or $3.00 per share, compared to $3.27 billion or $2.78 per share, in last year's corresponding period. This missed Wall Street consensus EPS estimates of $3.05. Total revenue in the period was down 5 percent to $23.41 billion from $24.67 billion last year. This also missed consensus expectations of $24.69 billion. Looking ahead, IBM reiterated its previous guidance for the full-year 2103 calling for EPS of at least $15.53 and adjusted EPS of at least $16.70. Currently, Wall Street analysts are projecting that the company will earn $16.77 per share for fiscal 2013.