The market hits IBM shares
Big Blue beats Street estimates and boosts guidance. But the decline in shares after hours may have nothing to do with the company.
That's what happened, and it may have more to do with the stock market than anything IBM did.
And despite all that good news, the stock fell 2.2% to $129.31 after hours Monday after rising 1.2% to $132.23.
There does seems to be another trend at work. Investors bid up a stock, assuming better-than-expected results.
And if the company comes up short in any way, its stock sells off.
IBM shares rose 3.6% between April 8 and Monday.
Oracle (ORCL) shares fell 1.5% to $25.69 after its fiscal-third-quarter report, released March 25, showed profits rising some 9% after one-time items. The shares had risen 5.6% in March ahead of the report.
Google (GOOG) fell 7.5% to $550.14 on Friday after its first-quarter earnings came out late Thursday. Google reported $6.76 a share in earnings, up from the Street estimate of $6.57. Shares had risen 5.1% in four days leading up to the report.
It appears that the whisper number was closer to $6.90. And investors seemed unhappy at Google's vow to boost spending and add jobs. Some analysts cut their price targets citing the lack of significant revenue drivers beyond core search.
There were some small problems with IBM that might give investors pause:
- Revenue was flat once you back out currency gains during the quarter.
- Its gross profit margin was 43.6%, a touch higher than a year ago's 43.4%. But Wall Street was looking for 44.1%.
- Its business services, which is its consulting business, showed only a 0.3% revenue gain from a year ago. Analysts have been hoping for more.
The stock is up just 1% this year, compared with 6.4% for the Dow Jones Industrial Average (INDU).
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages began the new trading week on a slightly lower note with small caps leading the weakness. The Russell 2000 shed 0.3% while the S&P 500 slipped less than a point with six sectors ending in the red.
Equity indices began the day in negative territory with only the Nasdaq (-0.04%) making a very brief appearance in the green. After sliding through the first hour of action, the major averages reversed and spent the remainder of the session climbing off ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'