This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

IBM Serves Up a Beat

Stock quotes in this article: IBM

NEW YORK ( TheStreet) -- Boosted by increases in mainframe, software and services revenue, International Business Machines (IBM) topped Wall Street's expectations for its fourth-quarter results by a healthy margin.

After the closing bell, Big Blue reported adjusted earnings of $4.18 per share on sales of $29 billion for the three months ended Dec. 31, well ahead of the average estimate of analysts polled by Thomson Reuters for a profit of $4.08 per share on revenue of $28.26 billion.

The company's gross profit margin came in at 49%, up 0.8 points year-over-year.

"We completed an outstanding year, with record profit and free cash flow, and exceeded the high end of our 2010 earnings per share roadmap objective," said Sam Palmisano, the company's chairman, president and chief executive officer, in a prepared statement. "As IBM enters its second century, we will continue to focus on our long-term strategic initiatives -- growth markets, Smarter Planet Solutions, cloud and business analytics -- as we drive to achieve our new roadmap target of operating earnings per share of at least $20 in 2015."

IBM said revenue from its business analytics business, which the company hopes to grow in 2011, was up 19% from last year's equivalent quarter. Last week, the Dow component introduced the world to Watson, its supercomputer that can somewhat understand English as it is naturally spoken. To demonstrate Watson's ability -- and appeal? -- IBM has set up a series of Jeopardy! matches between Watson and two long-running Jeopardy! champs, shows that will air Feb. 14 - 16.

While the game show setting is intended to introduce the computer to the masses, IBM has longer-term plans for the software that powers Watson. IBM said that eventually, corporate clients should be able to use Watson's technology to more efficiently process -- and make sense of -- data.

For 2011, IBM forecast non-GAAP generally accepted accounting principles earnings of at least $13 per share. Wall Street's current consensus estimate is for earnings of $12.58 a share in fiscal 2011.

IBM shares were last quoted at $154.30, up 2.4%, on volume of more than 700,000 in extended trading, according to Nasdaq.com.

--Written by Maggie Overfelt in New York.



>To follow the writer on Twitter, go to http://twitter.com/maggieoverfelt.

>To submit a news tip, send an email to: tips@thestreet.com.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs