Investing.com - International Business Machines, or IBM (NYSE:IBM), reported lower than expected third quarter earnings and revenue ahead of Monday's opening bell, sending its shares down sharply in pre-market trade.
IBM said adjusted earnings totaled $3.68 per share in the three months ending September 30, below forecasts for earnings of $4.32 per share.
The tech giant's third quarter revenue came in at $22.4 billion, missing estimates for revenue of $23.37 billion.
"We are disappointed in our performance. We saw a marked slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry," said Ginni Rometty, IBM chairman, president and chief executive officer.
The company has reached an agreement under which Globalfoundries will acquire IBMs Microelectronics OEM semiconductor business and manufacturing operations.
IBM will pay Globalfoundries $1.5 billion in cash over the next three years to take the chip operations off its hands, the companies said in a statement earlier Monday.
IBM will take a related pre-tax charge of $4.7 billion in its third quarter.
Immediately after the earnings announcement, IBM (NYSE:IBM) shares tumbled 6.5% in trading prior to the opening bell.
Meanwhile, U.S. stock futures pointed to a lower open. The Dow futures pointed to a loss of 0.6% at the open, the S&P 500 futures indicated a decline of 0.4%, while the Nasdaq 100 futures signaled a fall 0.3% at the open.