Tech giant IBM posted third-quarter earnings Tuesday in line with expectations, though shares sunk in after-hours trading as the company reported a dip in sales.
The Armonk, N.Y.-based firm’s revenue slipped 5.4% versus a year ago, coming in at $24.75 billion. Earnings per share, excluding special items, were $3.62.
Analysts surveyed by Thomson Reuters had predicted IBM would report earnings of $3.61 a share on $25.4 billion in revenue. Shares, which have recently been trading near an all-time high, slipped 3.5% after-hours Tuesday.
As one of the world’s biggest tech companies, IBM is often seen as a bellwether for the sector and the global economy. Shares have risen steadily over the past few years and are up about 13% in 2012, outpacing rivals Cisco, which is up 1%, and Hewlett-Packard, down 45%. Fellow tech heavyweight Oracle is up 23%.
IBM president and CEO Ginni Rometty, who took over as chair of the firm’s board earlier this month, said the company sees “good opportunity with a strong product lineup” heading into the fourth quarter. The firm reiterated its 2012 earnings-per-share guidance of at least $15.10.
