IBM Q2 Profit Falls; Company Raises Full-Year Outlook (IBM)
IBM (NYSE: IBM) released its fiscal second-quarter earnings results after the closing bell on Wednesday.
The company reported earnings per share that were ahead of Wall Street estimates, but revenue missed expectations. Despite reporting lower earnings and revenue in the most recent quarter, IBM raised its full-year earnings outlook. In late trade, the stock was last up almost 3 percent to $199.52.
Related: SanDisk Rises After Q2 Results
“In the second quarter, we delivered strong performance in our higher-value software and mainframe businesses and again significantly increased our services backlog on growth in new business,” said Ginni Rometty, IBM chairman, president and chief executive officer.
“Going forward, we will continue investing in our strategic growth initiatives, acquiring and divesting capabilities, re-balancing skills and taking action in the areas that are not performing. We expect continued improvement through the second half of the year and remain confident that we will achieve our increased 2013 operating EPS expectation of at least $16.90, excluding the $1 billion workforce rebalancing charge in the second quarter.”
The company reported net income for the second-quarter of $3.2 billion or $2.91 per share, compared to $3.9 billion or $3.34 per share, in last year's corresponding period.
Adjusted earnings were $4.3 billion or $3.91 per share. This compared to analysts' consensus EPS estimates of $3.77.
Revenue in the quarter fell 3 percent to $24.9 billion from $25.78 billion last year. This missed Wall Street analysts' consensus revenue estimates of $25.37 billion.
Full-Year EPS Guidance
Looking ahead, IBM said that it now expects full-year adjusted EPS of at least $16.90 per share compared to its previous guidance of at least $16.70 per share. This compares to current full-year consensus EPS estimates of $16.64.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.