IBM Crushes Estimates, But Shares Fall

International Business Machines Corp. IBM reported a third quarter earnings and revenue beat after the market closed Monday.

IBM surged past expectations, delivering earnings of $3.29 per share ahead of analyst expectations of $3.23. Revenue came in at $19.29 billion vs. an expected $19 billion revenue target.

The company said, "Our ability to apply deep expertise and breakthrough technology, led by Watson and the IBM Cloud, to massive amounts of data is enabling us to build new markets and transform industries,"

IBM saw its cloud revenue grow 44 percent year-over-year. The company is seeing positive results from its "strategic imperatives" initiative that includes cloud, analytics, mobility, and security.

Shares of IBM rose initially after hours, but are now down about 3.5 percent at #.6 percent.