IBM shares fell late Wednesday, even though the technology mainstay beat Wall Street’s fourth-quarter expectations.
During the December period IBM (IBM) earned $3.60 per share, minus some items, on $16.69 billion in sales. Earnings beat analyst forecasts by a penny, according to FactSet. Those analysts also expected revenue of $16.15 billion. On a year-over-year basis, revenues increased by 7.5% and revenues remained more or less flat.
Excluding the currency impact, the strongest growth came from IBM’s consulting business. Sales increased more than 9% to $4.8 billion. Revenue in the much larger software business rose 8% to $7.3 billion, leading to a 7.4% increase for the infrastructure division. Infrastructure sales totaled $4.5 billion.
IBM forecast full-year revenue growth at a mid-single-digit rate. That would rule out the impact of exchange rates. IBM stock analysts forecast revenue of $60.8 billion, which would be flat after revenue growth of about 6% in 2022.
In after-hours trading on the stock market, IBM shares fell 1.6% today to 138.55. According to MarketSmith.com, the shares form a flat base with a buy point of 153.31.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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