IBM posts fourth-quarter revenue below estimates

Shares of the world's largest technology services company fell 3.5 percent to $151.59 in extended trading.

IBM (IBM.NY)forecast 2015 operating earnings of $15.75 to $16.50 per share, just shy of analysts' average estimate of $16.51 per share, according to Thomson Reuters I/B/E/S.

The company has been divesting its underperforming businesses in an attempt to realign itself with the sector's shift to higher-margin businesses, such as security software and cloud services. It has also been battling an appreciating U.S. dollar.

The company's total revenue fell nearly 12 percent to $24.11 billion in the fourth quarter ended Dec. 31. Revenue from hardware fell 39 percent to $2.41 billion.

Net income fell to $5.48 billion, or $5.51 per share, from $6.19 billion, or $5.73 per share, a year earlier.

On an adjusted basis, the company earned $5.81 per share.

Analysts on average were expecting a profit of $5.41 per share on revenue of $24.77 billion.

The company's shares closed at $156.95 on the New York Stock Exchange on Tuesday.

(Reporting by Anya George Tharakan in Bengaluru; Editing by Savio D'Souza)