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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