IBM Stock Sinks on Disappointing Revenue

1 hr 34 min ago

IBM (IBM) shares were down nearly 6% early Thursday and were the biggest Dow decliner after the company reported quarterly revenue that fell short of Wall Street estimates.

The company late Thursday reported third-quarter revenue of $14.97 billion, up 1% year-over-year and 2% in constant-currency terms but lower than the $15.07 billion consensus estimate of analysts polled by Visible Alpha. Infrastructure revenue fell 7% and consulting revenue remained flat.

IBM posted a net loss of $330 million, or $0.36 per share, due to a $2.7 billion pension-settlement charge. Analysts expected a profit of $1.72 billion, or $1.84 per share.

IBM Chief Executive Officer (CEO) Arvind Krishna said the group expects fourth-quarter revenue growth, in constant-currency terms, to be “consistent” with the third quarter, driven by strong software sales. Krishna said the firm’s “AI book of business now stands at more than $3 billion, up more than $1 billion quarter to quarter.”

Even after falling early Thursday, IBM shares are up nearly 35% this year.

–Nisha Gopalan

UPS Shares Surge as Shipping Giant Returns to Growth

2 hr 48 min ago

United Parcel Service (UPS) shares jumped in premarket trading as the company reported third-quarter results that came in above analysts’ expectations.

The shipping giant reported revenue of $22.2 billion, better than the $21.94 billion consensus estimate of analysts compiled by Visible Alpha. Net income came in at $1.54 billion, or $1.80 per share, above projections, which called for $1.36 billion and $1.59 per share.

Thursday’s results mark the first time in nearly two years that UPS returned to posting year-over-year revenue and profit gains, after it and shipping rival FedEx (FDX) each reported declines following peaks in shipping demand during the pandemic.

UPS shares were up 9% at $143, trading at their highest level in three months.

–Aaron McDade

Futures Tied to Major Indexes Mixed

4 hr 3 min ago

Futures tied to the Dow Jones Industrial Average were down 0.2%.

S&P 500 futures were up 0.5%.

Nasdaq 100 futures were up 0.9%.

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