Wednesday, April 20, 2011

IBM signings fall; earnings beat forecasts

BOSTON (Reuters) - IBM reported a decline in signings of new business at its global services division throughout the first quarter, still as it reported profit and earning ahead of analysts' projections.

Signings fell 14 percent from what i read in a year previously to $10.5 billion during the first quarter, causing Wall Street market observors to grill the company on the grounds for the decline within the duration of an earnings conference call.

IBM shares fell during the call on Tuesday, declining 2.2 per cent in long trading to $161.75. They hit a put in $167.72 last month.

"I see the one quarter signings does not compose a trend, but it looks covet your last thre quarters trailing signings are actually down," Sanford Bernstein analyst Toni Sacconaghi informed IBM's chief mortgage officer, Mark Loughridge, throughout the conference call.

Loughridge said too signings are not a good predictor of times ahead revenue. Instead he argued too investors is planning to focus on shape backlog, that was up 6 percent at the end of the quarter at $142 billion.

The world's largest technology services bureau managed to beat anticipations for first-quarter revenue and revenue, much though it does about 11 per cent of its market in crisis-stricken Japan .

That was partially because of stable performance in the red-hot markets of Brazil, Russia , India and China, at which revenue was up a combined 26 percent out of a year earlier.

"These numbers show IBM's resiliency. They beat on just approximately every area I had hoped," said Ted Parrish, co-portfolio manager of the Henssler Equity Fund.

International Business Machines Corp stated its report for full-year profit, excluding items, to at minimum $13.15 out of its first view of at minimum $13.00.

IBM benefited from steady demand for the latest version of its mainframe computer, that it introduced in the third quarter of survive year. Sales of that product got up 41 per cent on a year earlier.

The establishment moreover reported first-quarter profit, excluding items, of $2.41 per share, ahead of the median analyst news story of $2.30, according to Thomson Reuters I/B/E/S.

Revenue rose 8 per cent based on a year previously to $24.6 billion, beating the typical analyst survey of $24.0 billion.

"The apprehension is properties did not really guide a whole lot bigger as opposed to properties had originally for the year, if you take to account the earnings surprise," said Fort Pitt Capital Group senior analyst Kim Caughey Forrest. "That's a little disappointing."

IBM shares got little changed, dropping to $165.36 on such a New York Stock Exchange close of $165.40.

(Additional reporting by Yinka Adegoke. Reporting by Jim Finkle, editing by Bernard Orr)

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