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

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.