Shares of IBM Flat Following Q1 Earnings

After trading down as much as 3% in last night's after-hours session, shares of IBM (NYSE: IBM) have climbed back into positive territory today following Q1 results which came in better-than-expected on the bottom line, but worse than analyst estimates on sales. The stock most recently traded at $100.84, up about 0.41% from yesterday's closing price.

IBM also reaffirmed its previously issued FY09 EPS guidance of at least $9.20, which compares to the Street estimate of $9.03.

Looking at just a few operating metrics, IBM said its gross profit margin during the quarter rose 109 basis points to 43.4%. The tech-giant also said it held $12.3 billion in cash on hand at the end of the quarter, with Q1 free cash flow rising about $450 million on a year-over-year basis to $1 billion.

Sales in IBM's America's region fell 7%, sales in Europe/Middle East/Africa fell 18% and Asia-Pacific revenue dropped 6% during the quarter.

UPDATE: Click here to see a summary of some highlights from IBM's Q1 conference call.

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