IBM fell after reporting second-quarter sales declines across all its major sections, missing analysts\’ estimates and marking the 13th straight duration of falling revenue.
Profit excluding some items was $3.84 a share, International Business Machines Corp. said in a statement Monday, beating the $3.78 average projection from analysts as reduced administrative and research costs offset declines in the services and software businesses. That average had already been cut 4.7 percent from three months ago.
Since overtaking as ceo more than three years ago, Ginni Rometty has struggled to fuel sales growth. After attempting to overhaul the business to be a seller of cloud-computing technology and knowledge analytics, investors are still missing the proof the company can grow organically.
\”Investors are losing patience given the revenue miss,\” said Bill Kreher, an analyst at Edward Jones & Co. \”It\’s a show-me stock.\”
IBM, located in Armonk, New York, fell as much as 5.3 percent to $164.01 at the end of trading after rising 0.4 percent to $173.22 in the close in Ny. The stock has lost about 10 % in the past year.
As demand has tumbled for products across all of IBM\’s major segments — services, software and hardware — Rometty has divested unprofitable businesses and invested in creating new units around cloud computing and also the Watson data-analytics tool. Still, the brand new isn\’t growing quick enough to offset the declines from the old.
\”The falloff in IBM\’s traditional businesses is dwarfing the business\’s ability to capture new revenue opportunities because the market shifts,\” Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co. wrote in a note Monday prior to the results were announced.