IBM 2Q beats Street despite revenue slip

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ARMONK, N.Y. (AP) — IBM says its second-quarter net income fell 17 percent as revenue slipped and it absorbed the cost of layoffs.

Net income came to $3.23 billion, or $2.91 per share, down from $3.88 billion, or $3.34 per share, a year earlier.

Excluding a $1 billion charge related to layoffs, IBM Corp.'s adjusted earnings came to $3.91 per share. That beat the $3.77 per share expected by analysts polled by FactSet.

Revenue fell 3 percent to $24.92 billion, mainly due to declines in services and systems and technology sales. Software revenue grew.

The Armonk, N.Y., company also raised its annual profit outlook. It now expects to earn an adjusted $16.90 per share for the full year, above the $16.66 analysts were expecting.

IBM's stock rose more than 2 percent in after-hours trading.

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