IBM ( IBM) shares bounced modestly on Wednesday after the company delivered the top- and bottom-line goods with its second-quarter earnings report, but many Wall Street analysts were keeping their enthusiasm in check. Shares of Big Blue recently rallied 3.3%, adding $2.44 to $76.70, after beating EPS by a penny and hitting its revenue numbers. The company said late Tuesday that second-quarter net income rose 14% to $2.02 billion, or $1.30 a share, up from $1.83 billion, or $1.12 a share in the same quarter last year. The consensus estimate pegged the company for $1.29 a share. Sales totaled $21.89 billion, off 2% but up 1% when adjusted for the sale of the company's PC business to Lenovo. Revenue was $22.27 billion a year ago, including $557 million from the last month of the PC business. IBM hit analysts' sales target of $21.89 billion. "Given that the company has missed revenue in 12 of 28 quarters and made EPS in 26 of 28 quarters , IBM achieving both consensus revenues and EPS this quarter in a skittish technology environment will likely be viewed semi-positively by investors," wrote Bernstein analyst Toni Sacconaghi in a Wednesday note. The IT services and hardware giant received positive commentary for its margin improvement and software sales, but analysts were discouraged by weak services bookings and slips in some hardware segments. Sacconaghi cautioned that the sluggishness in services, IBM's cash cow, was disappointing and could foreshadow additional weak revenue growth, especially if signings don't pick up in the second half of the year. Still, he said that the company's valuation is attractive and that earnings should beat consensus for the rest of 2006. He rates the company outperform with a $95 price target. His firm has provided IBM with non-investment-banking-related services over the past 12 months.