ARMONK, New York — IBM Corp. reported another drop in revenue Tuesday, although its fourth-quarter earnings were slightly better than Wall Street expected.
The commercial tech giant reported $22.06 billion in sales, down 8.5 percent from the same period a year earlier. Net income fell almost 19 percent to $4.46 billion.
Earnings adjusted for one-time gains and costs were $4.84 per share. Analysts surveyed by Zacks Investment Research were projecting adjusted earnings of $4.76 per share, on revenue of $22.23 billion.
Armonk, New York-based IBM's sales have declined for 15 consecutive quarters, although some of the decline has come as IBM has sold off business units that produced microprocessors and computer servers, which contributed revenue but had struggled for growth and profit in recent years.
CEO Virginia Rometty has been working to shift the company's focus to what she calls "high value" strategic priorities, including cloud computing, data analytics and cyber-security. IBM said its revenue from those efforts rose from about $25 billion in 2014 to $28.9 billion in 2015. Rometty has vowed to increase that figure to $40 billion by 2018, or more than 40 percent of the company's total sales.
For the year, the company reported profit of $13.19 billion, or $13.42 per share. Revenue was reported as $81.74 billion.
IBM shares have declined almost 7 percent since the beginning of the year, while the Standard & Poor's 500 index has dropped nearly 8 percent. The stock was down nearly 1 percent in extended trading Tuesday, after closing at $128.11.
Keywords: IBM, Earnings Report