Ahead of the Bell: IBM shares slide on 1Q report
IBM shares drop in premarket after 1Q miss worries investors
Shares of IBM Corp. fell in premarket trading Friday after its first-quarter results fell short of Wall Street expectations, a rare miss for the technology company.
IBM reported late Thursday that its earnings slipped 1 percent and revenue fell 5 percent because of delays in closing several large software and mainframe computer deals.
The CEO said IBM expected to close those deals in the current quarter.
IBM's lower-than-expected results were due in part to execution issues, Jefferies analyst Peter Misek said in a research note, adding that he expects improvement.
The company's CFO also said that a weak Japanese yen, which translates to fewer dollars for IBM on sales in that country, also affected its performance.
The Armonk, N.Y., kept its outlook for the full year intact. It still expects adjusted, per-share earnings of at least $16.70 for 2013. Analysts have been slightly more optimistic, expecting profit of $16.77.
The company's stock fell 5 percent, or $10.05, to $197.10 Friday just before the opening bell. IBM stock has gained 8 percent in 2013 and nearly 4 percent over the past 12 months.
