(By Salman - iStockAnalyst Writer)
The Armonk, N.Y.-based International Business Machines released its results more than a week ahead of schedule Wednesday to help arrest a sharp decline in its stock price. The technology giant reported a 20% gain in third-quarter profit and maintained its earnings forecast for the year.
In the third quarter, IBM said net income grew to $2.8 billion, or $2.05 a share, compared with $2.36 billion, or $1.68 a share, in the same period a year earlier. Revenue rose to $25.3 billion from $24.1 billion.
Additionally, for the full year, IBM maintained its earnings target of at least $8.75 a share, an increase of 22% over the prior period. Analysts surveyed by FactSet Research estimated third-quarter earnings of $2.01 a share on revenue of $26.5 billion and earnings of $8.74 a share for the full year.
In a statement, IBM chairman and CEO Sam Palmisano said "Our results demonstrate that the combination of a steady base of recurring revenue and profits, investments for growth in emerging markets, a range of products and services that deliver value to clients, and a strong and flexible financial foundation give IBM a competitive edge in good times and tough times"."We remain confident in our full-year outlook" Palmisano added.
IBM released the numbers ahead of schedule, a sign that the company is anxious to signal its health to nervous financial markets. IBM plans to deliver a full earnings report on Oct. 16.
Technology stocks remained a bright spot in otherwise lackluster market. Nasdaq Composite Index, heavily weighted in technology stock was up 0.11% 14:04 pm ET. Dow Jones Industrial Average was down 0.97% while S&P 500 Index lost 1.25% in afternoon trade. At 1:25 pm shares of IBM Corp. were up $1.75 or 1.93% at $92.30.
Other technology stocks also rallied. Microsoft Corp. (MSFT) rose 2.74%. Shares of blackberry maker Apple Inc climbed 3.12% while Google (GOOG) was up 3.12%.
Google will be reporting third-quarter results on 16th October. Apple is expected to announce its fourth quarter results on October 21 while Microsoft is expected to report first quarter result on 23rd October.
Disclosure: Author does not own any of the stocks discussed here.
