IBM Earnings Top Forecasts

IBM Corp. reported third-quarter profits Tuesday that surpassed analysts' estimates, but Big Blue also said it sees continuing weakness ahead in Latin America and Asia.

IBM (IBM), which reported profits after the market closed, made $1.5 billion, or $1.56 a share, in its third quarter. Analysts surveyed by First Call expected the world's largest technology company to make $1.53 a share.

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IBM's profits were slightly higher than year-ago levels, when the company made $1.4 billion, or $1.35 a share.

The tech titan, whose stock is a component of the Dow Jones industrial average, said revenue came in at $20.1 billion vs. $18.6 billion in the year-ago quarter. However, the company's personal computer sales were flat from year-ago levels.

IBM, based in Armonk, N.Y., warned it still expects some weakness in its Asian and Latin American markets, and it said semiconductor products are likely to face more pricing pressures.

Shares closed off 1 7/8 to 137 1/2 ahead of the news Tuesday.

Written By Tiare Rath, CBS MarketWatch