NEW YORK, Oct 8, 2008 (AFP) - US computer giant IBM on Wednesday released preliminary earnings for the third quarter, reporting net profit of 2.8 billion dollars and earnings per share slightly better than most analysts' expectations.

The New York state-headquartered firm said net profit for the three months which ended September 30 was up 20 percent compared with the same quarter last year.

Earnings per share came in at 2.05 dollars, slightly better than the 2.02 dollars forecast by analysts.

IBM said it continues to expect full-year 2008 earnings per share of 'at least 8.75 dollars,' or year-to-year growth of 22 percent.

The computer giant said overall revenue for the third quarter was 25.3 billion dollars, up five percent over the corresponding quarter last year but slightly lower than the 26.54 billion dollars expected by analysts.

'We remain confident in our full-year outlook,' said Samuel Palmisano, IBM chairman, president and chief executive.

'Our results demonstrate that the combination of a steady base of recurring revenue and profits, investments for growth in emerging markets, a range of products and services that deliver value to clients, and a strong and flexible financial foundation give IBM a competitive edge in good times and tough times,' he added.

IBM's share price rose 3.53 percent to 93.75 dollar in after-hours trading in New York following the earnings report.