ARMONK, N.Y. (TheStreet) -- The signs are pointing to strong second-quarter numbers from IBM (IBM) - Get Report when it reports its results after market close on Monday, but the company's stock may not receive a massive boost.
are fueling expectations for a strong IBM quarter, and analysts surveyed by Thomson Reuters expect the firm to bring in revenue of $24.17 billion and earnings of $2.58 a share, compared to $23.3 billion and earnings of $2.32 a share in the prior year's quarter.
Even a strong earnings beat, however, may not prompt
. The tech giant's stock has dipped more than 1% this year, despite
and bullish guidance. In May, for example,
, vowing to almost double its annual profit over the next five years.
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Speaking at the company's investor meeting, IBM CEO Sam Palmisano forecast annual earnings of $20 a share by 2015. The bullish outlook came just a few weeks after IBM raised its 2010 EPS guidance to at least $11.20.
, although the New York firm was one of a slew of companies that
last month as investors reacted to unease about the broader economy.
IBM, which competes with
and services giant
, and recently announced a slew of software and services in an attempt to tap the booming smartphone market.
IBM's software business brought in $5 billion during the company's recent first-quarter results, an 11% increase on the same period last year, and almost a quarter of the firm's total revenue.
At least one analyst firm has also raised the possibility of a tepid tech spending environment, which could impact IBM's numbers. Kaufman recently rated IBM new hold,
citing a weak cyclical recovery in services and software spending
It has also been suggested previously that IBM's sheer size could be an impediment to growth, although IBM's software chief Steve Mills recently told
that the company's massive scale lets it solve problems that other firms cannot
IBM shares rose 69 cents, or 0.46%, to $128.62 in early trading on Monday, mirroring the broader advance in tech stocks that saw the Nasdaq gain 0.51%.
-- Reported by James Rogers in New York
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