IBM earnings beat forecasts

IBM Corp. said its third-quarter profit rose nearly 20%, surpassing analysts’ estimates. However, slumping hardware sales hurt the technology company’s revenue, which missed Wall Street’s forecast.

The Armonk, N.Y.-based technology company had released partial results for the July-September period last week to try to reassure investors who had been driving down its stock price.

IBM earned $2.82 billion, or $2.05 a share, compared with $2.36 billion, or $1.68, in the year-earlier period. Analysts surveyed by Thomson Reuters were expecting $2.03 a share.

Sales grew 4.9% to $25.3 billion. Analysts were expecting $25.9 billion.

In another closely watched indicator, IBM said it signed $12.7 billion in new services contracts in the quarter, down 4%, which showed it was able to lock in new business despite the tough economic times.

IBM shares rose $3.23, or 3.7%, to $91.52.