New York - In a rare piece of positive economic news, IBM shares jumped as much as 4.9 per cent Thursday morning after the company reported that its third-quarter earnings rose 22 per cent to 3.9 billion dollars.

Shares in the technology powerhouse gave back some of the gains as analysts focused on-less-than expected growth in revenue, which inched up 2 per cent to 25.3 billion dollars, falling short of the 26.53 billion dollars expected by analysts.

The company released its earnings report ahead of schedule in a move used to signal its economic strength as markets fall. IBM said it would provide more detailed information about its earnings on October 16.

IBM reaffirmed earlier full-year guidance for 2008 of earnings per share of at least 8.75 dollars, up 22 per cent from the previous year.

"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," IBM chairman and chief executive Sam Palmisano said in a statement. (dpa)