IBM bumps guidance again, but revenue falls short

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SAN FRANCISCO (AP) ? IBM raised its full-year guidance again on Monday, offering fresh evidence of the company’s ability to wring profit from technology services and software contracts.

But questions about growth reared up as IBM’s third-quarter revenue missed Wall Street’s target ? something rare for the company.

Net income was $3.84 billion, or $3.19 per share, up 7 percent from $3.59 billion, or $2.82 per share, a year ago. Excluding special items, earnings were $3.28 per share, 6 cents per share better than average estimate by analysts surveyed by FactSet.

Revenue rose 8 percent to $26.16 billion, slightly less than the $26.26 billion that analysts had expected.

The company now expects adjusted earnings of at least $13.35 per share for the year. The previous forecast was for at least $13.25 per share.