IBM, eBay shares fall after earnings reports

SAN FRANCISCO (MarketWatch) — International Business Machines Corp. shares fell in the extended session Wednesday after the tech bellwether's earnings topped Wall Street estimates but revenue came in on the light side.

Bloomberg IBM's revenue falls short of analysts' targets.

IBM (IBM)  shares fell 6% to $175.56 on heavy volume after the company reported adjusted third-quarter earnings of $3.99 a share . Analysts polled by FactSet estimated $3.96 a share on revenue of $24.79 billion. The consensus estimate for earnings had held steady since late July, while revenue estimates had come down slightly over the same period.

Closing up 1.1% at $186.73 during the regular session Wednesday, IBM ranked as the second-largest component on the price-weighted Dow Jones Industrial Average (DJIA) , which finished up 1.4% on the day.

For the year, IBM said it expects adjusted earnings of at least $16.25 a share, or at least $16.90 a share excluding a second-quarter "workforce rebalancing" charge. Analysts surveyed by FactSet expect earnings of $16.87 a share.

Recently, IBM shares were downgraded by Barclays, which warned all the tech bellwether's segments could get hit by the rise of cloud computing and software-as-a-service.

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Shares of eBay Inc. (EBAY)  dropped 4.1% to $51.33 on heavy volume after the company's outlook for the fourth quarter disappointed.

Shares of Select Comfort Corp. (SCSS)  plunged 24% to $18.39 on heavy volume after the maker of Sleep Number beds reported disappointing third-quarter results and cut its outlook for the year.

Shares of eBay, IBM and Select Comfort were among the top 10 highest volume trades after hours Wednesday.

American Express Co. (AXP) shares rose 0.3% to $76.56 on moderate volume after the Dow component reported quarterly earnings of $1.25 a share on revenue of $8.3 billion.

Analysts expected third-quarter earnings of $1.22 a share on revenue of $8.23 billion. The consensus earnings-per-share figure has risen by a penny since late July, while the revenue consensus has declined slightly over the same period.

Xilinx Inc. (XLNX)  shares dropped 4.3% to $44.90 on moderate volume after the company reported fiscal second-quarter earnings.