IBM posted quarterly results that were better than expected on Jan. 18 on revived technology spending. The Armonk, New York-based company said its net profit rose 9% to $5.3 billion in the fourth quarter over a year ago while revenue was up seven percent to $29 billion.
Earnings per share of $4.18 were better than the $4.08 expected by analysts. IBM shares were up 2.82% at $150.65 in after-hours electronic trading.
"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 Samuel Palmisano, CEO.
"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," Palmisano said.
For the year, IBM said net profit rose 10% to $14.8 billion while revenue was 4% higher at $99.9 billion.
Earnings per share for the year were $11.52 and IBM set a target of $13 for the current year.
IBM said software revenue was up 11% in the fourth quarter, systems and technology revenue rose 21% and mainframe computer revenue soared 69% as businesses emerging from the recession began buying again.
Services revenue was two percent higher while business analytics revenue increased 19%, IBM said.
IBM said revenue rose 9% in the Americas to $12.2 billion and was 14% higher in Asia-Pacific at $6.6 billion. Revenue from Europe, the Middle East and Africa fell 2% to $9.5 billion.
Copyright Agence France-Presse, 2011