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: firstname.lastname@example.org. 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 SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV