From Wire Reports
NEW YORK, N.Y. – IBM says its first-quarter net income grew 7 percent, helped by strong profit margins in its services business and strong revenue growth across its software, hardware and services businesses.
IBM (NYSE: IBM) said Tuesday that it earned $3.07 billion, or $2.61 per share, in the January-March period. That’s up from $2.86 billion, or $2.31 per share, a year earlier.
Excluding special items such as acquisition costs, IBM earned $2.78 per share.
Revenue was flat at $24.7 billion.
Analysts surveyed by FactSet, on average, had expected adjusted earnings of $2.66 per share on revenue of $24.82 billion.
IBM also says it is raising its full-year guidance. It now expects adjusted earnings of at least $15 per share. That’s up from its earlier outlook of at least $14.85 per share.
“In the first quarter, we drove strong profit and earnings per share growth. We delivered another excellent software performance, expanded services margins, and continued the momentum in our growth initiatives,” said Ginni Rometty, IBM president and chief executive officer. “Our investments in growth market countries continued to generate strong revenue growth across software, hardware and services while contributing to the company’s ongoing margin expansion.
“Based on this performance,” she explained, “we are raising our 2012 full-year operating earnings per share expectations to at least $15.”
Read IBM’s full 2012 first-quarter results
Read IBM’s Earnings Call Transcript
IBM is coming off a recent all-time high of $210.69 per share in advance of today’s earnings release.
IBM stock has doubled over the last three years, and revenue grew by 7 percent in 2011.
Shares were up a little more than 2 percent for the day in after-hours trading.
