IBM Posts 13% Earnings Gain, Raises Guidance - InformationWeek
IoT
IoT
Infrastructure // PC & Servers
News
7/19/2010
04:58 PM
50%
50%
RELATED EVENTS
[Dark Reading Crash Course] Finding & Fixing Application Security Vulnerabilitie
Sep 14, 2017
Hear from a top applications security expert as he discusses key practices for scanning and securi ...Read More>>

IBM Posts 13% Earnings Gain, Raises Guidance

Big Blue beats Street's expectations for EPS but revenue falls just short of estimates.

IBM on Monday reported solid numbers across most of its business lines for the second quarter and raised full year earnings guidance.

The company said revenue came in at $23.72 billion—shy of the $24.17 billion expected by Wall Street analysts surveyed by Thomson Reuters but 2% higher than the same period a year ago. Net income jumped 9.1% to $3.39 billion, while earnings per share came in at $2.61, up 12.5% from the previous year.

Analysts expected EPS of $2.58.

"In the second quarter we again delivered double-digit earnings-per-share growth, increased margins, as well as improving constant-currency revenue performance in our ongoing software, services, and hardware businesses, and in all geographies," said IBM CEO Sam Palmisano, in a statement.

IBM saw modest sales growth across all its major product groups. Global Technology Services sales increased 1.4% to $9.23 billion, Global Business Services revenues were up 3.3% to $4.48 billion, software sales climbed 2.1% to $5.27 billion, while hardware sales from the company's Systems and Technology group grew 3.49% to $4 billion.

Geographically, IBM said sales increased 9% in the Asia-Pacific region and 3% in the Americas, while declining 6% across Europe, the Middle East, and Africa. Big Blue also said revenue from so-called BRIC countries—Brazil, Russia, India, and China—was up 22%.

In a positive sign for the tech industry, Palmisano said he expects the growth at the bellwether IT vendor to continue through the second half of 2010.

"With the benefit of our strategic growth investments, our mix of higher-value business and the introduction of new System z and Power Systems, we are confident of our ability in the second half of the year to continue our strong business performance, grow profit, and drive shareholder returns," Palmisano said.

As a result, IBM raised full-year EPS guidance to at least $11.25, from previously announced guidance of at least $11.20.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll