IBM Q1 Profit Jumps 13%, Beating View (IBM)

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I.T. giant International Business Machines Corp. ( IBM ) late Monday said its first quarter profit rose 13% from last year, helped by lower costs and higher revenue, beating analyst estimates.

The Armonk, NY-based company reported first quarter net income of $2.6 billion, or $1.97 per share, compared with $2.3 billion, or $1.70 per share, in the year-ago period. Revenue rose 5% from last year, to $22.9 billion.

On average, Wall Street analysts expected a smaller profit of $1.93 per share, on slightly lower revenue of $22.8 billion.

Looking ahead, the company boosted its full-year earnings forecast to $11.20 per share, which would beat current analyst estimates for $11.12 per share.

Despite the earnings beat, IBM shares fell $2.42, or -1.8%, in premarket trading Tuesday.

The Bottom Line
We have been recommending shares of IBM since Sept.16, when the stock was trading at $119.35. The company has a 1.66% dividend yield, based on last night's closing stock price of $132.23.

International Business Machines Corp. ( IBM ) is a "recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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