Intel, Microsoft and IBM Stocks Surge Upward Following Earnings

Microsoft Corporation (NASDAQ:MSFT) in the second quarter as profit dropped from a year earlier. Net income for Microsoft Corporation fell to $6.62 billion (78 cents per share) vs. $6.63 billion (77 cents per share) a year earlier. This is a decline of 0.2% from the year earlier quarter. Revenue rose 4.7% to $20.89 billion from the year earlier quarter. MSFT beat the mean analyst estimate of 76 cents per share. Analysts were expecting revenue of $20.94 billion.

“We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Steve Ballmer, chief executive officer at Microsoft. “Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.”

Competitors to Watch: Google Inc. (NASDAQ:GOOG), Novell, Inc. (NASDAQ:NOVL), Oracle Corporation (NASDAQ:ORCL), Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Yahoo! Inc. (NASDAQ:YHOO), Apple Inc. (NASDAQ:AAPL), Adobe Systems Incorporated (NASDAQ:ADBE), Intel Corporation (NASDAQ:INTC), and Sony Corporation (NYSE:SNE).

Intel Corporation (NASDAQ:INTC) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the semiconductor company rose to $3.36 billion (64 cents per share) vs. $3.18 billion (56 cents per share) in the same quarter a year earlier. This marks a rise of 5.7% from the year earlier quarter. Revenue rose 21.2% to $13.89 billion from the year earlier quarter. INTC reported adjusted net income of 68 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. Analysts were expecting revenue of $13.72 billion.

“2011 was an exceptional year for Intel,” said Paul Otellini, Intel president and CEO. “With outstanding execution the company performed superbly, growing revenue by more than $10 billion and eclipsing all annual revenue and earnings records. With a tremendous product and technology pipeline for 2012, we’re excited about the global growth opportunities presented by Ultrabook systems, the data center, security and the introduction of Intel-powered smartphones and tablets.”

Competitors to Watch: Advanced Micro Devices, Inc. (NYSE:AMD), Texas Instruments Inc. (NYSE:TXN), Intl. Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), NVIDIA Corporation (NASDAQ:NVDA), Oracle Corporation (NASDAQ:ORCL), Micron Technology, Inc. (NASDAQ:MU), ARM Holdings plc (NASDAQ:ARMH), and QUALCOMM, Inc. (NASDAQ:QCOM).

International Business Machines Corporation (NYSE:IBM) reported its results for the fourth quarter. Net income for the diversified computer systems company rose to $5.49 billion ($4.62 per share) vs. $5.26 billion ($4.18 per share) in the same quarter a year earlier. This marks a rise of 4.4% from the year earlier quarter. Revenue  rose 1.6% to $29.49 billion from the year earlier quarter.  IBM reported adjusted net income of $4.71 per share. By that measure, the company beat the mean estimate of $4.62 per share. Analysts were expecting revenue of $29.74 billion.

“We had a strong fourth-quarter performance, capping a year of record earnings per share, revenue, profit and free cash flow,” said Ginni Rometty, IBM president and chief executive officer. “We delivered outstanding results in all four of our strategic initiatives for the quarter and the year, as we continued to realize the benefit of our long-term investments in growth markets, business analytics, Smarter Planet solutions and cloud. We are well on track toward our long-term roadmap for operating earnings per share of at least $20 in 2015.”

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Hewlett-Packard Company (NYSE:HPQ), Microsoft Corporation (NASDAQ:MSFT), Cisco Systems, Inc. (NASDAQ:CSCO), Intel Corporation (NASDAQ:INTC), Dell Inc. (NASDAQ:DELL), Apple Inc. (NASDAQ:AAPL), EMC Corporation (NYSE:EMC), SAP AG (NYSE:SAP), and Sybase, Inc. (SY).