IBM stock sank late Wednesday, 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 topped analyst forecasts by a penny, according to FactSet. Those analysts also expected $16.15 billion in sales. On a year-over-year basis, earnings grew 7.5% and sales were roughly flat.
Excluding the impact of exchange rates, the strongest growth came from IBM’s consulting business. Revenue rose more than 9% to $4.8 billion. Sales in the much larger software business climbed 8% to $7.3 billion, leading a 7.4% jump for the infrastructure division. Infrastructure sales were $4.5 billion.
IBM predicted sales would grow by a mid-single-digit percentage for the full year. That would exclude the impact of exchange rates. IBM stock analysts projected $60.8 billion in sales, which would be flat after about 6% sales growth in 2022.
In after-hours trading on the stock market today, IBM stock dropped 1.6% to 138.55. Shares are forming a flat base with a buy point at 153.31, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
YOU MAY ALSO LIKE:
Abbott Laboratories Skids As Covid Tests Weigh On Organic Growth
Intuitive Surgical Just Dashed Investors’ Hopes — And ISRG Stock Crumbled
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
Watch IBD’s Investing Strategies Show For Actionable Market Insights
Learn How To Time The Market With IBD’s ETF Market Strategy