International Business Machines posted third quarter financial results which failed to impress investors due to a slow growth in sales.
The company reported total service signings of $12.3 billion during the third quarter of 2011, which failed to impress the analysts despite their $12 billion to $13 billion forecast.
The company was expected to publish third quarter results at par with those posted by Oracle and Accenture, but it did not. IBM is known for its exceptional performance even during the times of economic uncertainty thanks to its recurring service contracts.
IBM said that the revenue rose by 8 percent to $26.2 billion, missing analyst expectations of $26.3 billion.
Unimpressed inventors sent the company’s stock down from an all-time high of $190.53 to $179.70, a fall of 3.7 percent. But, overall, the company’s share price has increased by 27 percent. IBM’s result paint an uncertain picture of the IT consumer market as economic crisis threatens to befall the United States and the European Union.
"We're in the early stages of third-quarter earnings season and everyone's looking at top-line numbers to see any evidence of the economic slowdown working its way into financial results," Keith Wirtz, chief investment officer for Fifth Third Asset Management, told Reuters.
"All the news on macro has been negative. At what point does it creep into the company's numbers? We're still seeing above-average results." he added.