IBM Earnings: Upside Surprise Win Against Analysts

International Business Machines Corp. (NYSE:IBM) exceeded Wall Street’s profit and revenue expectations, igniting investor interest. Shares are up 2.69%.

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International Business Machines Corp. Earnings Cheat Sheet

Results: Net income increased 11.11% to $6.1 billion ($5.39 per diluted share) in the quarter versus a net gain of $5.49 billion in the year-earlier quarter.

Revenue: Decreased 0.63% to $29.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: International Business Machines Corp. reported adjusted net income of $5.39 per share. By that measure, the company beat the mean analyst estimate of $5.25. It beat the average revenue estimate of $29.09 billion.

Quoting Management:

“We achieved record profit, earnings per share and free cash flow in 2012. Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives — growth markets, analytics, cloud computing, Smarter Planet solutions — which support our continued shift to higher-value businesses,” said Ginni Rometty, IBM chairman, president and chief executive officer…

”Looking ahead, we continue to invest to deliver innovations for the enterprise in key areas such as big data, mobile solutions, social business and security, while expanding into new markets and reaching new clients. We are well on track toward our long-term roadmap for operating EPS of at least $20 in 2015.”

Key Stats:

Revenue increased 18.4% from $24.75 billion in the previous quarter. Net income increased 59.52% from $3.82 billion in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $3.05 to a profit $3.03. For the current year, the average estimate is a profit of $15.13, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)