IBM met earnings estimates and beat revenue estimates after the close on Wednesday, but Big Blue’s stock declined after hours because much of the gains came from favorable currency translations.
IBM’s earnings of 98 cents a share matched analysts’ estimates, and revenues of $21.63 billion, up 10% year-over-year, came in ahead of $21.43 billion estimates. IBM also reaffirmed full-year guidance, but traders viewed the lack of upside guidance as one more sign of a lackluster economy and IT spending environment.
Big Blue’s report capped a day that saw Intel surge 5% on better than expected results – while the rest of the market fell.
The Nasdaq lost 5 to 1747, the S&P 500 declined 6 to 994, and the Dow fell 34 to 9094. Volume rose to 1.67 billion shares on the NYSE, but was unchanged at 1.93 billion on the Nasdaq. Decliners led 22-10 on the NYSE, and 18-13 on the Nasdaq. Downside volume was 70% on the NYSE, and 62% on the Nasdaq. New highs-new lows were 102-18 on the NYSE, and 235-3 on the Nasdaq.
After the close, Apple , QLogic
, SanDisk
, and AMD
beat estimates, while Internet Security
missed and E*Trade
met estimates.
During the day, Lucent and Motorola
fell on earnings warnings, and Applied Micro
and RF Micro
fell on their reports. Seagate
edged higher on its results.
EMC fell 8% despite better than expected results.
Microsoft and Dell
rose on a homeland security deal.
Intersil rose 3% after exiting the Wi-Fi business.
Homestore gained 11% on a deal with MSN.
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