IBM raises 2010 guidance to at least $11.25 per share, reflecting confidence
By Jordan Robertson, APMonday, July 19, 2010
IBM raises 2010 guidance, reflecting confidence
SAN FRANCISCO — IBM Corp. raised its 2010 net income guidance to at least $11.25 per share, a nickel per share increase that reflects IBM’s confidence in its ability to squeeze more profit out of its workhorse technology services and software divisions.
The increase came as IBM reported Monday that its second-quarter net income jumped 9 percent to $3.39 billion, or $2.65 per share. That compares with $3.1 billion, or $2.34 per share, a year ago. It tops analyst projections for $2.58 per share.
Still, shares of IBM fell $4.73, or 3.6 percent, to $125.06 in extended trading Monday as revenue fell short of analyst expectations.
Revenue rose 2 percent to $23.7 billion, below the $24.2 billion that analysts expected. IBM said currency changes hurt revenue by $500 million in the quarter and that many analysts didn’t account for those changes in their forecasts.
Tags: North America, San Francisco, United States
