IBM Bombs Earnings

IBM ($IBM) released a terrible earnings report this morning. For the third quarter, Big Blue earned $3.68 per share. That’s 63 cents per share below Wall Street’s consensus. IBM also ditched its 2015 earnings target of $20 per share.

Last quarter was ugly in nearly every way. Their revenue dropped to $22.4 billion. Wall Street had been expecting $23.37 billion. This was their tenth-straight quarter with a revenue decline.

IBM also said it will pay Globalfoundries $1.5 billion over three years to take their chip-making business off their hands. The shares are looking to open around 7% lower.

Posted by on October 20th, 2014 at 9:13 am


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