IBM drops 5% after missing revenue estimates and withdrawing full-year guidance due to coronavirus

• Shares of IBM fell more than 5% in early Tuesday trading after the company missed revenue estimates for its fiscal first quarter.
• The cloud technology company beat earnings estimates but missed revenue estimates and withdrew its full-year guidance, citing weakness in the macro economy due to the coronavirus pandemic.
• This is IBM's first earnings report with new CEO Arvind Krishna at the helm, after replacing Ginni Rometty earlier this month.
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Shares of IBM fell more than 5% Tuesday morning after the company reported earnings for its fiscal first quarter and withdrew full-year guidance, citing weakness in the macro economy due to the coronavirus pandemic.

Here are the key numbers:

Revenue: $17.57 billion, versus the $17.69 billion estimate

Adjusted Earnings Per Share: $1.84, versus the $1.81 estimate

Total Cloud Revenue: $5.4 billion, up 19% year-over-year

Global Technology Services Revenue: $6.47 billion, down 6% year-over-year

Growth in IBM's cloud unit was not enough to stem the company's year-over-year revenue decline of 3.5%, primarily driven by weakness in IBM's legacy global technology services segment.

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With investors focusing on balance sheet strength now more than ever due to the current economic climate caused by the coronavirus, IBM highlighted its liquidity position to try an quell investor concerns.

IBM's chief financial officer James Kavanaugh said, "Our recurring revenue stream, continued gross profit margin expansion and strong balance sheet and liquidity position remain stabilizing elements in an unprecedented business climate."

IBM also reported that its free cash flow of $1.4 billion was the same amount the company paid to shareholders via its quarterly dividend.

The company ended the first quarter with $12 billion in cash, and $64.3 billion in total debt, which is down $8.7 billion since the second fiscal quarter of 2019.