IBM earnings rise with software and service lift

Summary:The company has reported its second-quarter earnings, with a boost coming from software and services, despite a strong dollar

IBM on Tuesday delivered strong second-quarter earnings, with software and services leading the way despite a strong dollar.

The company reported second-quarter earnings of $3.4bn (£2.2bn), or $2.61 a share, on revenue of $23.7bn. Wall Street was expecting earnings of $2.58 a share on revenue of $24.17bn. IBM said a strong dollar was a $500m hit to revenue. Most analysts didn't account for currency fluctuations. A strong dollar relative to international currencies can hurt sales when international revenue is tallied in the US.

The company's chief executive Sam Palmisano said in a statement that the company expects 2010 earnings of at least $11.25 a share, in line with current expectations. Chief financial officer Mark Loughridge said on a conference call that the company has raised its earnings targets both in January and April. The company's previous outlook called for 2010 earnings of $11.20 a share.

For more on this story, see IBM delivers solid second quarter, but strong U.S. dollar dings sales on ZDNet.com.

Topics: Tech Industry

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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