CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

IBM share price slides on Q3 earnings disappointment as sales slump continues

The IT and consulting services company saw its shares slide in after hours trading, after its Q3 results failed to impress investors.

IBM shares are down 5% to $134 in after-hours trading after its Q3 results disappointed investors by revealing its prolonged sales slump has continued into the second-half of the year.

The IT and consulting services company published its latest set of results after the market closed on Wednesday, with revenues down for the firth consecutive quarter.

Thinking about trading IBM and other tech stocks? Open a demo or live account with IG

IBM sales miss the mark, but earnings edge out estimates

IBM saw its revenues miss analysts forecasts by $190 million, with total sales for the quarter coming in at $18 billion. However, its earnings per share narrowly beat analysts’ estimates by $0.02 at $2.68.

‘We continued our focus on the strength of our balance sheet in the third quarter,’ IBM CEO James Kavanaugh.

‘We generated $12.3 billion in free cash flow over the last 12 months and with our disciplined financial management we reduced debt by nearly $7 billion in the quarter, while maintaining a strong cash balance.’

IBM looks to revive growth with $32 billion Red Hat acquisition

IBM acquired open-source software company Red Hat in July for $34 billion – making it the largest deal in the company’s history.

The century-old IT firm is placing a major bet on hybrid cloud technology to reinvigorate growth and reverse declining sales.

‘This company has had to be reinvented many times,” IBM CEO Ginni Rometty told Bloomberg in September. ‘It’s something many other companies have yet to face.’

‘It is one thing to put out new products, but it is something else when the competitive landscape attacks your core business models and you have to develop a new one,’ she added.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.