IBM raises '13 outlook; Q2 earnings beat, revenue drops
IBM said that a "substantional second-half gain" it was expecting in its previous EPS outlook "will not likely be achieved" by the end of 2013.
July 18, 2013 / 12:05 IST
IBM, the world's largest technology services company, raised its full-year outlook as it cut costs and reported second-quarter earnings that beat estimates.
Its shares were up nearly 3 percent in after-hours trade.Also Read: Microsoft revamp to keep up with technological changesInternational Business Machines Corp said on Wednesday that excluding a USD 1 billion restructuring charge related to job cuts, non-GAAP earnings per share expectations were being raised to at least USD 16.90 from USD 16.70.Full-year GAAP diluted earnings per share are at least USD 15.08, IBM said.The Armonk, NY-based company said its quarterly non-GAAP income rose 3 percent, excluding a USD 1 billion restructuring charge, to USD 4.3 billion, or USD 3.91 a share, compared with USD 3.51 a year ago and analyst estimates of USD 3.77 a share, according to Thomson Reuters I/B/E/S.On a GAAP basis, earnings per share were USD 2.91, down 13 percent; net income was USD 3.2 billion, down 17 percent.Revenue dropped 3 percent to USD 24.9 billion below average analyst expectations of USD 25.4 billion.IBM also said that a "substantional second-half gain" it was expecting in its previous EPS outlook "will not likely be achieved" by the end of 2013.Several brokerages had cut their price targets for IBM in the past weeks on concerns over revenue growth and recent weaker performance by competitors Oracle and Accenture . Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
