Hot Earnings: International Business Machines & THQ Inc (NASDAQ:THQI)
International Business Machines Corp. (NYSE:IBM) shares slid in the pre-market session despite the company reported higher than estimated first quarter earnings on flat revenue. The latest quarter’s earnings were driven by strong margins in its services business.
The company reported that it earned $3.07 billion or $2.61 a share during the latest quarter, up from a year ago profit of $2.86 billion, or $2.31 a share. On an adjusted basis, the company would have earned $2.78 a share, ahead of analysts’ estimates by 12 cents.
Revenue during the latest quarter stood flat at $24.7 billion with increased revenue from Software and services segment, offset by decline in hardware and financing segment. Analysts were estimating the company to report $24.82 billion.
The company also boosted its full-year guidance and said now it projects to earn at least $15 per share, up from its earlier outlook of at least $14.85 per share. Analysts were expecting $14.93 per share.
By segment, IBM’s software revenue grew 5% to $5.6 billion and hardware revenue slid 7% to $3.7 billion. Technology services revenue grew 2% to $10 billion and business services revenue slid less than 2% to $4.6 billion.
Shares of IBM are now down over 2% to $203.00.
THQ Inc. (NASDAQ:THQI) shares are soaring in the pre-market session as the company trimmed its fourth quarter loss significantly strong sales of its Saints Row: The Third game.
The company now projects a loss of $0.10-$0.20 a share, well below its earlier forecast of 40 cents a share.
Revenue is now estimated at $160-$170 million, from its previously forecast of $142.30 million.
THQ expects to report cash and cash equivalents of $76 million, three times higher than its previous estimate.
Shares of THQI are up 49% to $0.67 in the pre-market session.
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