IBM bumps guidance again, but revenue falls short

(AP) -- IBM raised its full-year guidance again on Monday, offering fresh evidence of the company's ability to wring profit from technology services and software contracts.

But questions about growth reared up as IBM's third-quarter revenue fell slightly short of Wall Street's target - a disappointment for a company that usually exceeds expectations. IBM's stock fell in extended trading.

Net income was $3.84 billion, or $3.19 per share, up 7 percent from $3.59 billion, or $2.82 per share, a year ago. Excluding special items, earnings were $3.28 per share, 6 cents per share better than average estimate by analysts surveyed by FactSet.

Revenue rose 8 percent to $26.16 billion, slightly less than the $26.26 billion that analysts had expected.

The company, which is based in Armonk, N.Y., now expects adjusted earnings of at least $13.35 per share for the year. The previous forecast was for at least $13.25 per share.

The stock fell $5.59, or 3 percent, to $181 in extended trading after the release of results. Earlier, it closed down $3.94, or 2.1 percent, at $186.59 on a weak day for the market overall.