IBM earnings miss Wall Street forecast
IBM's revenue dropped below Wall Street estimates after the tech giant announced its third-quarter results for 2012.
The multinational corporation earned US$3.8 billion during the period or $3.33 per share, delivering the same income a year earlier despite per-share earnings 14 cents lower than 2011.
Total revenues came in at $24.7 billion, representing a 5% drop from the third quarter of 2011 with the company saying currency negatively impacted revenue growth by nearly $1 billion.
“In the third quarter, we continued to drive margin, profit and earnings growth through our focus on higher-value businesses, strategic growth initiatives and productivity,” says Ginni Rometty, IBM chairman, president and chief executive officer.
“Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit and cash.
"We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10.”
IBM's results follows Intel's revenue and profit drop during the quarter of fiscal 2012 compared to the same period last year, blaming a weakened marketplace for poor sales.