IBM, the world's largest technology services company, reported an increase in first-quarter earnings, but missed estimates due to the depreciation of the Japanese yen.
Thursday the company said its quarterly non-GAAP income rose 3 percent to $US3.4 billion ($A3.3 billion), or $3.00, compared with analyst estimates of $3.05 a share, according to Thomson Reuters.
The deterioration in Yen currency since mid-January reduced EPS by $0.07, a spokesman said.
Quarterly revenue dropped 5 percent to $23.4 billion compared with estimates of $24.6 billion. Revenues fell 3 percent adjusted for currency.
Some analysts were unhappy with the results and IBM shares lost 3.1 percent from a closing price of $207.15 in extended trading following results.
"It's disappointing results," said ISI group analyst Brian Marshall.
"Clearly the business model is somewhat over-optimised. It's the first quarter in many years they did not grow EPS double digits year-over-year."
He added investors were very focused on that double-digit earnings growth.
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