IBM delivers solid quarter, but strong dollar dings sales
Software and services boost Big Blue's second quarter, but a strong dollar was a $500 million hit to revenue.
IBM on Tuesday delivered strong second-quarter earnings, but revenue took a hit due to a strong dollar. Software and services led the way.
IBM reported second-quarter earnings of $3.4 billion, or $2.61 a share, on revenue of $23.7 billion. Wall Street was expecting earnings of $2.58 a share on revenue of $24.17 billion. IBM said a strong dollar was a $500 million hit to revenue. Most analysts didn't account for currency fluctuations. A strong dollar relative to international currencies dings sales when international revenue is tallied in the U.S.
CEO Sam Palmisano said that the company expects 2010 earnings of at least $11.25 a share, in line with current expectations.
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