Big Blue raises guidance on strength of solid growth across full range of enterprise IT offerings; BI and cloud technologies star.
Slideshow: 100 Years Of IBM: 25 Historic Milestones
(click image for larger view and for slideshow)
IBM beat estimates for its second quarter Monday, as earnings per share increased 18% year-over-year to $3.09 while revenue climbed 5%, excluding currency gains, to $26.7 billion. Net income rose 11%, to $3.8 billion.
Wall Street analysts were, on average, expecting Big Blue to post quarterly earnings of $3.03 per share on revenue of $25.35 billion.
After seeing growth across all key metrics, IBM raised its full-year 2011 guidance for operating EPS to $13.25. IBM has said publicly that it's targeting EPS of $20 by the year 2015.
"In the second quarter our long-term strategic investments in the company's growth initiatives again helped drive strong revenue performance," Palmisano said in a statement. "As IBM begins its second century, we continue to lead in the future and deliver higher value to our clients and our shareholders."
IBM saw growth across the breadth of its product portfolio--a sign that enterprise spending on IT products and services is holding up despite uncertainty about the broader economy.
Total services revenues increased 2%, after excluding currency-related gains, to $15.1 billion. The company's services backlog as of June 30 was $144 billion, up $2 billion from the previous year excluding currency. Software sales rose 10% year-over-year, to $6.2 billion, while revenue from sales of servers, mainframes, and other hardware was up 12%, to $4.7 billion.
IBM shares were up more than 2% in after-hours trading. The company's shares closed down 0.15%, to $175.28, in regular trading Monday.
At the 2011 InformationWeek 500 Conference, C-level executives from leading global companies will gather to discuss how their organizations are turbo-charging business execution and growth--how their accelerated enterprises manage cash more effectively, invest more wisely, delight customers more consistently, manage risk more profitably. The conference will feature a range of keynote, panel, and workshop sessions. St. Regis Monarch Beach, Calif., Sept. 11-13. Find out more and register.