IBM Declines After Soft Consulting Sales Weigh on Results
- Consulting clients haven’t been expanding budgets, IBM says
- Expectations had been high coming into earnings report
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International Business Machines Corp. declined as much as 8% in late trading after the company reported underwhelming revenue in the third quarter, hurt by a slowdown in consulting demand.
Sales increased 1% to $15 billion in the period, slightly missing the average estimate from analysts. Results were weighed down by a flat consulting business, which contributed $5.15 billion in revenue.