: IBM stock slips after earnings show another revenue decline

IBM IBM, -0.32% reported third-quarter net income of $2.3 billion, or $2.58 a share, from $2.68 a share in the year-ago period. Earnings from continuing operations were $1.89 a share, compared with $1.87 a share in the year-ago period. Revenue fell to $17.6 billion from $18.03 billion in the year-ago quarter, continuing a long-term sales decline that has seen revenue decline year-over-year in all but four of the past 33 quarters.

IBM had reported preliminary earnings of $2.58 a share on revenue of $17.6 billion earlier this month when it announced the planned spinoff of its IT outsourcing business, and analysts surveyed by FactSet had shifted their estimates to an average $2.58 a share on revenue of $17.54 billion.

Shares declined about 1% after hours, following a 0.3% decline in the regular session to $125.52.

IBM has focused on hybrid-cloud technology of late, including with the spinoff news, which was messaged as a way to focus more on that area. IBM claimed total cloud revenue, which is spread among some of its segments, increased 19% to $6 billion.

Global technology services, or GTS, posted $6.5 billion in revenue compared with $6.7 billion in the year-ago quarter and the $6.25 billion Street consensus. The company reported cloud and cognitive software revenue — which includes Red Hat — of $5.6 billion compared with $5.28 billion a year ago, while analysts had been looking for $5.48 billion.

Global business services revenue was $4 billion, compared with $4.12 billion a year ago, and Street forecasts of $3.9 billion. Systems revenue was $1.3 billion, compared with $1.48 billion a year ago and analyst expectations of $1.55 billion.

For the year, IBM shares are down 6%, compared with a 1% decline on the Dow Jones Industrial Average  DJIA, -1.43%, and versus a 6% rise on the S&P 500 index  SPX, -1.63% and a 28% gain on the Nasdaq Composite Index  COMP, -1.65%.