International Business Machines (NYSE: IBM) posted earnings of $2.91 per share on Monday, which was up 9 percent from the $2.68 per share mark posted a year ago. While their first quarter adjusted earnings beat Wall Street expectations, revenues fell shy of estimates at $19.59 billion, which was down 12 percent.
Chief Financial Officer Martin Schroeter mentioned during the company’s earnings call that the stronger dollar was affecting sales. About two-thirds of their revenue are from outside the U.S. where software and hardware segment sales dropped 8 and 23 percent respectively from last year.
IBM shares rose more than 3 percent in Monday’s regular trading session. The stock fell flat in after hours trading after posting a 2 percent spike in anticipation of the earnings report.
The company overcame Wall Street expectations of quarterly earnings of $2.80 per share but fell short of the expected $19.64 billion in revenue. The result continues a pattern of missing expectations according to Thomson Reuters, which shows that IBM has missed the mark in 8 of the last 9 quarters and posted declining revenues over the past 12 quarters.
Schroeter noted on the earnings call that the results were “quite a good start to the year.” He mentioned strength in IBM’s cloud computing and business analytics in spite of the growing currency struggles.
IBM has grappled with decreasing revenue over the past three years, as customers are seeking business with smaller, more agile cloud-based outfits.