IBM Sees 2016 Earnings Per Share of $13.50 Lower Than Estimates

IBM forecast 2016 earnings that trailed analysts’ estimates, as the company continues to struggle to return to growth in the face of price pressure and declining demand for its legacy services business.

International Business Machines Corp. expects 2016 operating earnings of at least $13.50 a share, Chief Financial Officer Martin Schroeter said during a conference call to discuss earnings. Analysts had projected $15 on average, and the estimates ranged from $13.94 to $16.42, according to data compiled by Bloomberg.

While lowering the 2016 estimates “could create another step down in the stock near-term, it may ultimately create an attractive point of entry for more value-oriented investors,” Toni Sacconagi, an analyst at Sanford C. Bernstein & Co., wrote in a note before the results.

IBM shares declined as much as 4.8 percent to $121.96 in extended trading after the forecast was issued.

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