IBM Rallies As Quarterly Earnings, Revenue Beat Wall Street's Expectations

By Sue ChangMarketsMarketWatch Pulse

Shares of International Business Machines Corp. rallied in Monday's extended session after the technology giant turned in better-than-expected financial results. But it also marked the 17th straight quarter of revenue drop on a year-over-year basis. IBM reported its second-quarter earnings declined to $2.5 billion, or $2.61 a share, from $3.45 billion, or $3.50 a share, a year ago. Revenue fell 3% to $20.24 billion. Excluding charges and items, Big Blue would have earned $2.95 a share. Analysts surveyed by FactSet had forecast earnings of $2.89 a share on revenue of $22.06 billion. IBM maintained its adjusted earnings outlook at $13.50 for 2016. IBM shares climbed 3.2% after hours.

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