IBM bumps guidance again, but revenue falls short

Oct 17, 2011 By JORDAN ROBERTSON , AP Technology Writer
In this March 1, 2010 file photo, people walk along a sign with the slogan "IBM - smarter together," at the CeBIT computer trade fair in Hanover, Germany. IBM releases quarterly financial results Monday, Oct. 17, 2011, after the market close. (AP Photo/dapd, Focke Strangmann, File)

(AP) -- IBM raised its full-year guidance again on Monday, offering fresh evidence of the company's ability to wring profit from technology services and software contracts.

But questions about growth reared up as IBM's third-quarter revenue fell slightly short of Wall Street's target - a disappointment for a company that usually exceeds expectations. IBM's stock fell in extended trading.

Net income was $3.84 billion, or $3.19 per share, up 7 percent from $3.59 billion, or $2.82 per share, a year ago. Excluding special items, earnings were $3.28 per share, 6 cents per share better than average estimate by analysts surveyed by FactSet.

Revenue rose 8 percent to $26.16 billion, slightly less than the $26.26 billion that analysts had expected.

The company, which is based in Armonk, N.Y., now expects adjusted earnings of at least $13.35 per share for the year. The previous forecast was for at least $13.25 per share.

The stock fell $5.59, or 3 percent, to $181 in extended trading after the release of results. Earlier, it closed down $3.94, or 2.1 percent, at $186.59 on a weak day for the market overall.

Explore further: Sony broadly releases 'The Interview' in reversal of plans

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Qualcomm 3Q results beat Wall Street estimates

Jul 20, 2011

(AP) -- Wireless chip-maker Qualcomm Inc.'s results for the latest quarter beat Wall Street's expectations, and its projections for the current quarter are also above analysts' estimates.

IBM raises guidance, beats Street estimates

Jul 18, 2011

IBM Corp. raised its income guidance for the year on Monday as earnings in the latest quarter increased 8 percent because of growth in all three of its major product categories.

Oracle fiscal 3Q net income up 78 pct

Mar 24, 2011

(AP) -- Database software maker Oracle Corp. said Thursday its net income rose 78 percent in the fiscal third quarter, helped by a rise in new software license sales and the benefit of three full months of ...

Hewlett-Packard reports higher 3Q earnings

Aug 19, 2011

(AP) -- Hewlett-Packard Co. reported an increase in its third-quarter net income on Thursday, but the technology company gave a lower-than-expected outlook for the current quarter and cut its outlook for ...

Oracle profit slips, but software revenue rises

Mar 25, 2010

(AP) -- Oracle Corp.'s profit fell 10.5 percent in the latest quarter as the business software maker absorbed Sun Microsystems and its expenses for building and supporting computer servers.

Recommended for you

LivingSocial's new CEO eyes an experience-oriented future

Dec 24, 2014

Some big challenges lie ahead for LivingSocial, the online marketplace known for its daily deals and discounted prices on restaurants, spas and local activities. But that's where the company's new chief executive, Gautam ...

Uber hits roadblock as CEO charged in S. Korea

Dec 24, 2014

South Korean prosecutors brought charges on Wednesday against the founder and CEO of controversial smartphone taxi app Uber for operating an illegal cab service, the latest roadblock for the California-based ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.