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IBM posts higher earnings, and also raises forecast; shares dip in late trades

SAN FRANCISCO (MarketWatch)
IBM Corp. on Monday reported a 7% gain in net income, but the technology company’s shares slipped in after-hours trading
The Armonk, NY-based company reported a third-quarter profit of $3.84 billion, or $3.19 a share, compared with a profit of $3.59 billion, or $2.82 a share, for the year-earlier period.
Revenue was $26.2 billion, up 8% from $24.3 billion.
However, the company also said that sales rose just 3% adjusting for currency-exchange rates. Operating non-GAAP earnings came to $3.28 a share, IBM reported.
Analysts had expected the company to earn $3.22 a share, on revenue of $26.3 billion, according to a survey by FactSet Research.
In a statement, IBM Chief Executive Sam Palmisano said “growth markets delivered outstanding revenue performance across software, hardware and services and contributed to the company’s expanded margins.”
IBM raised its 2011 adjusted operating earnings forecast to at least $13.35 a share from at least $13.25 a share previously.

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