IBM Eases Past Earnings View, Raises Guidance
ARMONK, New York. (TheStreet) -- IBM (IBM) eased past the average analysts' earnings forecast in its second-quarter results, released after market close on Wednesday, and raised its full-year guidance.
Currency pressures, however, weighed heavily on the Dow component's top line.
Excluding items, the tech giant earned $3.51 a share, up from $3.09 a share in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of $3.42 a share.
IBM's second-quarter revenue came in at $25.78 billion, down 3% for the same period last year and well below the consensus view of $26.27 billion. Currency translation negatively impacted revenue growth by approximately $1 billion, according to the Armonk, N.Y.-based company.
IBM also raised its expectations for fiscal 2012 earnings to at least $15.10 a share from at least $15 a share. Wall Street's current estimate is for a full-year profit of $15.06 a share "Looking ahead, we are well positioned to deliver greater value to a wider range of clients and to our shareholders," explained Ginni Rometty, IBM's CEO, in a statement. "Given our performance in the first half and our outlook for the second half, we are raising our full-year operating earnings per share expectations to at least $15.10." The guidance hike clearly resonated with investors. IBM shares rose 1.73% to $191.50 in extended trading on Wednesday. Revenue from IBM's Global Technology Services division slipped 2% year-over-year (or up 2%, adjusted for currency) to $10 billion, with Global Business Services revenue down 4% (down 1% adjusted for currency) to $4.7 billion. Software revenue was flat, or up 4% adjusted for the effects of currency, at $6.2 billion. Revenue from IBM's Systems and Technology group, which encompasses servers and storage was down 9%, or 7% adjusted for currency, to $4.3 billion. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: tips@thestreet.com. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
