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IBM earnings miss Wall Street forecast

18 Oct 2012

IBM's revenue dropped below Wall Street estimates after the tech giant announced its third-quarter results for 2012.

The multinational corporation earned US$3.8 billion during the period or $3.33 per share, delivering the same income a year earlier despite per-share earnings 14 cents lower than 2011.

Total revenues came in at $24.7 billion, representing a 5% drop from the third quarter of 2011 with the company saying currency negatively impacted revenue growth by nearly $1 billion.

“In the third quarter, we continued to drive margin, profit and earnings growth through our focus on higher-value businesses, strategic growth initiatives and productivity,” says Ginni Rometty, IBM chairman, president and chief executive officer.

“Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit and cash.

"We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10.”

IBM's results follows Intel's revenue and profit drop during the quarter of fiscal 2012 compared to the same period last year, blaming a weakened marketplace for poor sales.