International Business Machines Corp. on Wednesday reported first-quarter profits fell slightly, but another blue-chip firm, Walt Disney Co., said its earnings soared.
Armonk, N.Y.-based IBM said a surge in computer services failed to offset disappointing hardware and software sales and the effect of a strong dollar.
IBM’s earnings slipped to $1.20 billion, or $2.37 a share, from $1.21 billion, or $2.21 a share, in the year-earlier period before a charge. Per-share results rose because the company had 7.8 percent fewer shares outstanding in the recent quarter.
Analysts expected profits of $2.30 a share, based on the average estimate of 14 analysts surveyed by I/B/E/S International.
Sales rose 4 percent, to $17.31 billion from $16.56 billion. Overseas sales translated into less in dollar terms because of the U.S. currency’s rise. Without that, sales would have increased 9 percent, IBM said.
