IBM reported second-quarter earnings of $3.4 billion, or $2.61 a share, on revenue of $23.7 billion. Wall Street was expecting earnings of $2.58 a share on revenue of $24.17 billion. IBM said a strong dollar was a $500 million hit to revenue. Most analysts didn’t account for currency fluctuations. A strong dollar relative to international currencies dings sales when international revenue is tallied in the U.S.
CEO Sam Palmisano said that the company expects 2010 earnings of at least $11.25 a share, in line with current expectations.