International Business Machines Corp. (NYSE: IBM) said late Tuesday that its first quarter net income rose to $2.9 billion, or $2.31 per share, from $2.6 billion, or $1.97 per share, in the year-earlier quarter. On an adjusted basis, the company earned $2.31 per share in the latest quarter. Revenue grew 8% to $24.6 billion from $22.9 billion in the prior year quarter. Analysts, on average, expected the company to report earnings of $2.30 per share on revenue of $24.02 billion.
"We delivered a strong first quarter with revenue growth across hardware, software and services and with more than 40 countries growing in double digits. We continued to see excellent momentum in our growth initiatives - smarter planet, cloud, business analytics, and growth markets - which bring together the full value of the IBM portfolio," said Samuel J. Palmisano, IBM chairman, president and chief executive officer. "We achieved broad-based margin improvement, while our cash flow and strong financial position enabled us to continue to return value to our shareholders.
IBM also raised its full-year 2011 earnings guidance. The company now expects GAAP earnings of at least $12.73 per share and operating earnings of at least $13.15 per share. Previously, the company estimated GAAP earnings of at least $12.56 per share and operating earnings of at least $13.00 per share.
Shares of the company rallied more than 2% in after-hours trading on Tuesday.
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