Big Blue (IBM) Higher After Strong 'Beat-and-Raise' Quarter

Shares of IBM (NYSE: IBM) are trading higher after-hours after reporting a strong "beat-and-raise" quarter. Shares of IBM are up 1.5% currently to $113.

IBM reported second quarter EPS of $2.32, up 18% from last year and well above the consensus of $2.02. Revenues fell 13% to $23.3 billion, slightly below the consensus of $23.59 billion. IBM said the earnings this quarter were a record for any first, second or third quarter.

Looking ahead, IBM raised its full-year 2009 EPS forecast to "at least" $9.70, up from its prior guidance of $9.20 and the consensus of $9.15. IBM also stated that they "well ahead of pace for" their 2010 roadmap of $10 to $11 per share, which compares favorable to the consensus of $10.07.

IBM total gross profit margin was 45.5% in the second quarter compared with 43.2% last year, led by improving margins in services and software. IBM's total expense and other income decreased 19% to $6.3 billion compared with the prior-year period. SG&A expense decreased 19% and RD&E expense decreased 14%.

UPDATE: Click here to see some highlights from the company's Q2 conference call.

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