This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

IBM Eases Past Earnings View, Raises Guidance

Stocks in this article: IBM

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.

>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 SERVICES
Action Alerts PLUS
Try it NOW

Jim 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
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David 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
Dividend Stock Advisor
Try it NOW

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
Real Money Pro
Try it NOW

All 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 Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our 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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs