(By Balaseshan) Technology bellwether International Business Machines Corp. (NYSE:IBM) raised its full year 2012 guidance due to strong quarterly performance. Its second quarter earnings exceeded Street's expectations, sending its shares up 1.91% in aftermarket.
For the full year 2012, the company lifted its earnings per share (EPS) guidance to at least $14.40 from previous forecast of at least $14.27, and its operating EPS outlook to at least $15.10 from prior estimate of at least $15.00, while Street analysts predict $15.06.
The Armonk, New York-headquartered IBM's second quarter earnings rose 5.9% to $3.07 billion, while its EPS grew 11.3% to $3.34. Operating earnings were $4.08 billion or $3.51 per share, higher than last year's $3.78 billion or $3.09 per share.
Revenue fell 3.3% to $25.78 billion. Analysts had expected profit of $3.42 per share on revenue of $26.28 billion. Revenue increased 1% after adjusting for currency, which negatively impacted revenue growth by about $1 billion.
Revenue from global technology services declined 2.4%, while global business services revenue decreased 4.1%. Software revenue remained flat with last year, while systems and technology revenue fell 9%.
Revenue from the Americas' decreased 1% to $11.1 billion, while revenue from Europe/Middle East/Africa fell 9% to $7.9 billion. Asia-Pacific revenue increased 2% to $6.3 billion, while OEM revenue plunged 24% to $512 million.
Gross margin increased to 47.6% from 46.4%, while operating gross profit margin rose to 48.2% from 46.8% with increases in Global Technology Services and Global Business Services.
IBM closed Wednesday's regular session up 2.50% at $188.25. The stock has been trading between $157.13 and $210.69 for the past 52 weeks.