Jul. 19, 2010 at 5:15 p.m.

IBM profits top Wall Street expectations

RESEARCH TRIANGLE PARK, N.C. – IBM (NYSE: IBM) took a $500 million hit due to changes in currency values but still beat Wall Street expectations for profit in the second quarter.

After the markets closed Monday, IBM said it earned $2.61 per share, up 29 cents or 13 percent from a year ago.

Net revenues increased to $3.4 billion from $3.1 billion and total revenues climbed to $23.7 billion, up 2 percent after the currency adjustment, IBM said.

Analysts polled by Thomson Reuters believe IBM will report more revenues and higher earnings than Q2 for 2009 with revenues up nearly $1 billion to $24.2 billion and earnings climbing to $2.58 from $2.32 per share.

IBM shares closed Monday at $129.79, up $1.76 or 1.4 percent.

Still, shares of IBM fell $4.73, or 3.6 percent, to $125.06 in extended trading Monday as revenue fell short of analyst expectations.

IBM said many analysts didn't account for those currency changes in their forecasts.

“In the second quarter we again delivered double-digit earnings-per-share growth, increased margins, as well as improving constant-currency revenue performance in our ongoing software, services and hardware businesses, and in all geographies,â€