This Day On The Street
Continue to site
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

IBM Beats Earnings, Boosts Guidance

NEW YORK ( TheStreet) -- IBM (IBM - Get Report) beat Wall Street's second-quarter estimate and raised its guidance after market close, despite missing analysts' topline forecast.

Excluding the impact of a $1 billion workforce rebalancing charge incurred in the quarter, the tech giant earned $3.91 a share, a year-over-year increase of 8%. IBM, however, brought in revenue of $24.9 billion, down 3% over the same period, or 1% adjusted for currency.

Analysts surveyed by Thomson Reuters were looking for earnings of $3.77 a share and sales of $25.37 billion.

The company's software revenue rose 4%, or 5% adjusted for currency. Within its software business, key branded middleware revenue grew 9%, or 10% adjusting for currency.

IBM's services revenue dipped 4%, or 1% adjusted for currency, but its services backlog was up 3% to $141 billion, or 7% adjusted for the effects of currency.

The Armonk, N.Y.-based firm saw revenue from its Systems and Technology business fall 12%, or 11% adjusted for currency, although sales of its System z mainframe climbed 10%, or 11% adjusting for the impact of currency.

"In the second quarter, we delivered strong performance in our higher-value software and mainframe businesses and again significantly increased our services backlog on growth in new business," said IBM CEO Ginni Rometty, in a statement released after market close.

Rometty added that IBM is confident of achieving its increased 2013 operating EPS expectation of at least $16.90, excluding the $1 billion workforce rebalancing charge. Previously, IBM had forecast operating EPS of at least $16.70.

IBM shares climbed 2.45% to $199.49 after market close.

--Written by James Rogers in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
IBM $161.09 0.00%
AAPL $122.99 0.00%
FB $96.99 0.00%
GOOG $631.93 0.00%
TSLA $263.82 0.00%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs