After the bell Monday, IBM Corp. (IBM: 129.79 0.00 0.00%) reported earnings per share (EPS) of $2.61, marginally beating the Zacks Consensus Estimate of $2.58. Revenues of $23.7 billion rose 2% sequentially, but were roughly $500 million below estimates. Fiscal 2010 EPS expectations were cited as “at least” $11.25 per share, a penny below the Zacks consensus.IBM has seemingly entered a comfort zone of reporting numbers a shade past analysts’ expectations. Its 1.16% positive surprise is close to the 1.6% positive surprise IBM has averaged over the past 4 quarters. Analysts had generally stood pat on earnings estimates, with only one adjusting his or her quarterly and fiscal year estimates upwards and one additional analyst lowering estimates for fiscal 2010. Over the past quarter, only the fiscal year estimate has budged, up 19 cents or 1.7%.
These positive results are despite the weakening Euro in the quarter having hurt IBM’s sizable overseas sales. Offsetting difficulties in Europe was IBM’s strength in Brazil, Russia, India and China (BRIC), where business was up 22%. All major businesses improved in the quarter, including Business Analytics (up 14%), Systems and Technology (up 3%) and Services (up 2%).
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