IBM results beat forecasts

IBM nudged up its outlook for the full year and reported stronger-than-expected results today as more companies bolstered spending…

IBM nudged up its outlook for the full year and reported stronger-than-expected results today as more companies bolstered spending on software and consulting on hopes of a sustained recovery for the technology sector.

The company reported its first-quarter profit rose to $2.6 billion, or $1.97 per share, from $2.3 billion, or $1.70 per share, a year earlier. Analysts on average had expected earnings per share of $1.93, according to Thomson Reuters I/B/E/S.

Revenue rose 5 percent to $22.9 billion from $21.7 billion, accelerating from a 1 per cent year-on-year gain in the previous quarter. Wall Street had forecast revenue of $22.7 billion.

The company raised its 2010 profit target to "at least $11.20" from a previous outlook of "at least $11."

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Reuters