IBM Beats Earnings, Boosts Guidance

NEW YORK ( TheStreet) -- IBM ( IBM) 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.

More from Technology

These 5 Tech Giants Still Aren't That Expensive

These 5 Tech Giants Still Aren't That Expensive

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

Trump Puts Tech in Trade War Crosshairs With Planned Curb on China Investment

Trump Puts Tech in Trade War Crosshairs With Planned Curb on China Investment

Intel CEO Brian Krzanich's Ouster Proves CEOs Aren't Above the Rules

Intel CEO Brian Krzanich's Ouster Proves CEOs Aren't Above the Rules