IBM earnings rise with software and service lift

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