International Business Machines Corporation (IBM Quick QuoteIBM - Free Report) just released its first quarter 2017 financial results, posting earnings of $2.38 per share and revenues $18.16 billion. Currently, IBM is a Zacks Rank #3 (Hold), and is down 4.01% to $163.23 per share in after-hours trading shortly after its earnings report was released.

Beat earnings estimates. The company posted earnings of $2.38 per share (excluding $0.53 from non-recurring items), topping the Zacks Consensus Estimate of $2.34 per share.

Missed revenue estimates. The company saw revenue figures of $18.16 billion, missing our consensus estimate of $18.49 billion.

IBM’s total revenue fell for the 20th consecutive quarter, and the company’s profit fell 13% in the first quarter.

The once powerful technology giant is currently trying to transition into more of a cloud computing and artificial intelligence company. IBM’s quarterly cloud revenues rose 33% year-over-year to $3.5 billion. Over the last 12 months, the company’s cloud revenues were $14.6 billion.

IBM'sCognitive Solutions sector, which includes Solutions Software and Transaction Processing Software, grew 2.1% to $4.1 billion driven, thanks in part to growth in the company’s artificial intelligence Watson-related segment.

The company’s Global Business Services revenues were down 3% to $4 billion. IBM’s Technology Services & Cloud Platforms revenues were also down 2.5% to $8.2 billion.

"In the first quarter, both the IBM Cloud and our cognitive solutions again grew strongly, which fueled robust performance in our strategic imperatives," IBM chairman, president and CEO Ginni Rometty said in a press release.

"In addition, we are developing and bringing to market emerging technologies such as blockchain and quantum, revolutionizing how enterprises will tackle complex business problems in the years ahead."

Here’s a graph that looks at IBM’s Price, Consensus and EPS Surprise history:

International Business Machines Corporation Price, Consensus and EPS Surprise

International Business Machines Corporation Price, Consensus and EPS Surprise | International Business Machines Corporation Quote

IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The Global Technology Services segment provides IT infrastructure services and business process services. The Global Business Services segment offers professional services and application management services. The Software segment consists primarily of middleware and operating systems software. The Systems and Technology segment provides computing power and storage solutions; and semiconductor technology products and packaging solutions. The Global Financing segment invests in financing assets, leverages with debt and manages the associated risks. IBM is headquartered in Armonk, New York.

Check back later for our full analysis on IBM’s earnings report!

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