Shares of International Business Machines Corporation (NYSE: IBM) opened more than 8% lower on Friday after the company posted a fourth consecutive quarter of declining revenue on Thursday

What Happened: For the fourth quarter, IBM reported adjusted earnings of $2.07 per share, beating the consensus Street estimate of $1.79

Quarterly sales came in at just $20.37 billion, falling below the estimate of $20.68 billion. 

Why It’s Important: Much of the loss was contributed to the cloud and cognitive software segments, which fell far short of analyst expectations.

IBM reported $6.84 billion in sales for this segment, missing UBS’ estimate by 6.3%.

On the company conference call, IBM’s Chief Financial Officer Jim Kavanaugh referenced the tough challenges brought on by the pandemic.

“Given the level of macroeconomic uncertainty, more clients tended to move toward shorter duration engagements, impacting our software revenue,” the CFO said. 

CEO Arvind Krishna asked investors to focus on the company’s plans to grow its cloud and artificial intelligence segments and said …

Full story available on Benzinga.com