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: Turner channels removed from Dish amid pact spat

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

Turner channels removed from Dish amid pact spat

13 hours ago

Channels such as Cartoon Network and CNN are no longer part of Dish's programming lineup as a deadline has passed for the satellite TV provider and Turner Broadcasting to renew their distribution agreement.

Verizon reports higher 3Q net income, revenue

14 hours ago

Verizon Communications Inc. on Tuesday reported higher net income and revenue in its third quarter, helped by strong wireless subscriber growth and demand for its high-speed FiOS Internet services.

Amazon, Simon & Schuster sign book retail deal

22 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

User comments : 0