IBM today posted a dip in quarterly net profit, but results topped Wall Street expectations as revenue from consulting grew for a second straight quarter.
Third-quarter net income dipped 2.5 per cent to $1.52 billion, or 94 cents per share, from a restated $1.55 billion, or 92 cents per share, in the year-earlier period, IBM said in a statement.
But chief financial officer Mark Loughridge told investors he expects the company to deliver double-digit earnings per share growth during the fourth quarter and into next year.
IBM shares rose 1.9 per cent in after-hours trading.
Consulting, the company's biggest revenue generator, slipped earlier this year, but has been rebounding after IBM won a €1.5 billion contract with ABN Amro Holding of The Netherlands.
Restructuring that followed a disappointing first-quarter performance fed through into greater productivity in the services unit in the most recent period, leading to a 25 per cent rebound in its earnings per share from a year ago.