Summary Box: IBM sees bigger 2010 profit but can’t shake economy jitters
By APMonday, July 19, 2010
Summary Box: IBM ups 2010 forecast but fears loom
UNWELCOME UNCERTAINTY: IBM beat earnings expectations in the second quarter and raised its guidance but shares fell on uncertainty about the stability of world markets.
REVENUE SHORTFALL: Analysts were concerned about a reduction in the value of services contracts signed during the quarter and revenue that fell short of forecasts.
THE EXPLANATION: IBM said it would have beaten revenue forecasts were it not for currency changes that analysts didn’t include in their estimates. Deal signings were down because many customers renegotiated contracts last year and signed extensions.
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