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IBM hikes 2009 outlook after strong Q3

The company reported a solid third quarter with better-than-expected profit and revenue growth
Written by Larry Dignan, Contributor

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.

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