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NEW YORK ( TheStreet) -- IBM(IBM - Get Report) has lifted its full-year guidance and reported a third-quarter earnings beat.
For the third quarter, IBM reported a 12% increase in net income to $3.6 billion, from $3.2 billion the previous year. Earnings per share rose 18% to $2.82 per share, from $2.40 per share a year ago. Revenue increased 3% to $24.3 billion from $23.6 billion the same time last year.
Analysts were expecting IBM to report earnings of $2.75 per share on revenue of $24.12 billion.
During the quarter, global services revenue increased 2%, growth markets revenue increased 16%, software segment revenue grew 1% and systems and technology revenue grew 10%.
IBM said it estimates that the company's services backlog at Sept. 30 was $134 billion, up $5 billion quarter on quarter and down $2 billion, adjusting for currency effects. The backlog was flat year over year, adjusting for currency.
The backlog included signed services contracts of $11 billion, down 7% in the quarter, of which 10 contracts were greater than $100 million. Transactional signings were $5.4 billion, an increase of 4%. Outsourcing signings were $5.7 billion, down 15%. IBM said including an agreement signed on October 8, the company would have reported outsourcing signings growth of 14%, adjusting for currency effects, and that this would have increased total signings reported to $12.7 billion from $11 billion.
IBM added that it has boosted full-year EPS expectations to at least $11.40 from the previously-expected $11.25. The full-year EPS consensus estimate has been $11.29.
IBM stock has tumbled by 3.7% to $137.60 in after-hours trading despite the solid earnings announcement.
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-- Written by Andrea Tse in New York.
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