IBM plays white knight for Wall St. with profit preview

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IBM Corp. rushed out a preview of its third-quarter earnings report this afternoon, trying to inject a note of optimism into the stock market gloom.

The computer services giant said net income was up 20% in the quarter ended Sept. 30, to $2.08 billion, or $2.05 a share. Sales rose 5% to $25.3 billion.

Earnings beat analysts’ estimates by about 5 cents a share, although sales appeared to be short of the consensus.

The company also reaffirmed its 2008 full-year profit forecast, saying it expected to earn at least $8.75 a share, a 22% increase over 2007.

In a statement, CEO Samuel Palmisano said IBM had a ‘competitive edge in good times and tough times’ and ‘we remain confident in our full-year outlook.’

IBM’s shares have been hammered with the rest of the market and fell for a sixth straight session today, losing $5.10 to $90.55, a two-year low. The stock has plunged 25% since Sept. 25.

IBM had planned to report its results Oct. 16, but ‘with the market conditions the way they are, we felt it was important to get our results out as soon as possible,’ a spokesman told Bloomberg News.

The rush job is having the desired effect: IBM’s shares have jumped to $96.18 in after-hours trading.