IBM (NYSE: IBM) shares gave up 4% in the session Tuesday, after the information technology company stated it produced lower-than-expected first quarter revenue results.
IBM has generated $2.25 per share on the revenue of $18.18 billion, compared with the analysts’ consensus of $2.22 on the revenue of $18.46 billion, according to Refinitiv.
Revenue was 5% lower than in the year-ago period, recording a third successive quarter of falling revenue.
IBM is expected to buy out the Red Hat software company for $34 billion in the second half of 2019. “IBM is winning new, even cloud-native, customers before RHT,” wrote analysts from Nomura Instinet. “OpenShift [a Red Hat product] should help IBM win new customers and new workloads as enterprises begin to usher mission-critical applications from on-premise to public or private clouds.”
Shares of IBM advanced nearly 28% since the beginning of this year (see the IBM stock chart here).