While International Business Machines Corp's first-quarter profit beat Wall Street projections and the technology giant reiterated its full-year outlook, its shares fell 2 percent in after-hours trading on Monday."I didn't expect them to miss on revenue by that much, which is probably why the stock is trading off," said Peter Misek, analyst at Canaccord Adams.
"Short-term bookings look a little weaker than everybody had hoped. That probably means that the next quarter will be mixed. The long-term guide looks solid."IBM said its quarterly revenue fell to $21.71 billion from $24.50 billion a year earlier. That compared with analysts' average forecast of $22.56 billion, according to Reuters Estimates.
Net profit for the quarter ended March 31 fell 1 percent to $2.30 billion, from $2.32 billion in the year-ago quarter.Profit per share, however, rose to $1.70 from $1.64, as the number of shares outstanding decreased. Analysts on average were expecting profit of $1.67 per share, according to Reuters Estimates.
IBM has so far fared better than many other technology companies, thanks to its growing focus on software and services, such as outsourcing and technology support.
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