IBM Easily Surpasses Q4 Analyst Expectations
IBM (NYSE:IBM) blew by analyst expectations for the fourth quarter. The company’s adjusted earnings for the last three months of the year were $4.71, far above $4.61 forecast. The pleasantly high revenue caused IBM’s stock price to go up 2% in after hours trading.
Revenue was up by 9% in IBM’s software department and up by 3% in services. The company’s hardware division didn’t fare as well with a revenue decline of 8%.
Bloomberg Business Week quoted FBN Securities analyst Shebly Seyrafi who said, “Software was a relative strength. It’s a bit relieving that IBM, which is a bellwether in technology, did not disappoint investors.” Seyrafi gave the stock a “sector perform” rating.
Global economic concerns have many wondering if IBM can weather the storm, but the company continues to say that its long-term contracts have insulated the company against economic volatility. New CEO Ginni Rometty has demonstrated her confidence in the company by proclaiming publicly that IBM aims to have adjusted earnings of at least $20 per share by 2015. Rometty has recently said that the company is “well on track” to hitting the goal.