IBM hikes 2009 outlook after strong Q3

Summary:The company reported a solid third quarter with better-than-expected profit and revenue growth

IBM delivered a solid third quarter that featured better-than-expected profit and revenue growth. The company also upped its earnings targets for 2009.

IBM on Thursday reported third quarter net income of $3.1bn (£1.9bn), or $2.40 a share, on revenue of $23.6bn, down seven percent from a year ago. Wall Street was looking for earnings of $2.38 a share on revenue of $23.4bn.

The outlook was also solid. IBM is expecting 2009 earnings to be about $9.85 a share, up from a previous projection of $9.70 a share. Wall Street had IBM at $9.78 for the year. On a conference call with analysts, IBM chief financial officer Mark Loughridge said the company gained market share in both hardware and software. In software Websphere gained three percent market share on Oracle middleware, said Loughridge. On the hardware side, "we're taking it [share] from both Sun and HP", he added.

For more on IBM delivers solid quarter, ups 2009 earnings outlook, see ZDNet.com.

Topics: Networking

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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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