Tuesday, September 11, 2012

IBM Q2 Rev Misses, EPS Beats; Raises Year EPS View

International Business Machines (IBM) this afternoon reported Q2 revenue that missed analysts’ estimates, but earnings per share that beat consensus.

Revenue in the three months ended in June fell 3.3%, year over year, to $25.8 billion, yielding EPS of $3.51.

Analysts on average were expecting $26.3 billion and $3.43 per share.

For the full year, the company raised its outlook to EPS of “at least $15.10″ from a prior $15 per share. That is slightly ahead of consensus of $15.05.

IBM shares are up $1.24, or half a percent, at $189.49� in late trading.

Gross margin in the quarter improved from the year ago 46.4% to 47.6%.

IBM’s Americas revenue fell 1%, year over year, including the impact of foreign exchange. Europe/Middle East/Africa revenue fell 9%, and Asia-Pacific revenue was up 2%.

Revenue for software was flat, year over year, IBM said, while total Global Technology Services revenue fell 2% and Global Business Services revenue was down 4%. The results would have been up 2% and down 1% if not for currency effects, IBM said.

Hardware revenue fell 9%, year over year, or 5%, excluding currency effects, with “Power” systems servers down 7% and “System Z” revenue down 11%.

IBM management is hosting a conference call with analysts beginning at 4:30 pm, Eastern time, and you can catch it here.

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