IBM preliminary profit beats expectations

Business Materials 9 October 2008 04:38 (UTC +04:00)

IBM reported on Wednesday preliminary third-quarter earnings that beat analysts' expectations, and it affirmed its full-year profit outlook, sending shares up 4 percent, Reuters reported.

International Business Machines Corp said third-quarter net income rose 20 percent to $2.8 billion, while earnings per share from continuing operations rose 22 percent to $2.05. Revenue rose 5 percent to $25.3 billion, including 3 points from currency benefits, IBM said.

Analysts were looking for earnings of $2.01 per share on revenue of $26.5 billion, according to Reuters Estimates.

"Our results demonstrate that the combination of a steady base of recurring revenue and profits, investments for growth in emerging markets, a range of products and services that deliver value to clients, and a strong and flexible financial foundation give IBM a competitive edge in good times and tough times," CEO Samuel Palmisano said in a statement. "We remain confident in our full-year outlook."

IBM affirmed its forecast that 2008 earnings per share would be at least $8.75, representing year-on-year growth of 22 percent.

Shares of IBM rose 3.8 percent to $94.0 in after-hours trading, compared to their close on the New York Stock Exchange of $90.55.