IBM (IBM) Posts Solid 11% Growth in Q4 Pro-Forma Profit; Shares Move Higher
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Price: $184.10 +1.05%
Revenue Growth %: +1.1%
Financial Fact:
Intellectual property and custom development income: -528M
Today's EPS Names:
NLY, CP, RUSHA, More
Revenue Growth %: +1.1%
Financial Fact:
Intellectual property and custom development income: -528M
Today's EPS Names:
NLY, CP, RUSHA, More
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Traders are buying shares of International Business Machines (NYSE: IBM) Thursday evening following mixed fourth-quarter results.
After trading higher throughout the morning session, IBM shares gave up gains to close down 0.3 percent to $180.52. On the heels of the report, the stock is up about 2.4 percent from the close, last trading at $184.85.
The Armonk, NY-based company saw quarterly sales rise a modest 1.6 percent from $29.02 billion in the fourth quarter of 2010 to $29.486 billion. Analysts on the Street were anticipating sales of $29.74 billion.
GAAP net income rose 4.4 percent from $5.26 billion in the year-ago quarter to $5.49 billion, or $4.62 per share. On a pro-forma basis, net income reached $5.597 billion, or $4.71 per share, up nearly 11 percent from the $4.25 per share reported in 2010's fourth quarter. The consensus estimate was for earnings of $4.62 per share.
Sales to IBM's Global Technology unit rose 2.7 percent year-over-year to $10.75 billion, sales to the Business unit were up 2.3 percent to $5.07 billion, and sales to the Software segment were up 8.8 percent to $8.499 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."
The company said it expects to report fiscal 2012 GAAP EPS of at least $14.16 and adjusted-EPS of at least $14.85. The Street is currently expecting fiscal 2012 EPS of $14.82.
After trading higher throughout the morning session, IBM shares gave up gains to close down 0.3 percent to $180.52. On the heels of the report, the stock is up about 2.4 percent from the close, last trading at $184.85.
The Armonk, NY-based company saw quarterly sales rise a modest 1.6 percent from $29.02 billion in the fourth quarter of 2010 to $29.486 billion. Analysts on the Street were anticipating sales of $29.74 billion.
GAAP net income rose 4.4 percent from $5.26 billion in the year-ago quarter to $5.49 billion, or $4.62 per share. On a pro-forma basis, net income reached $5.597 billion, or $4.71 per share, up nearly 11 percent from the $4.25 per share reported in 2010's fourth quarter. The consensus estimate was for earnings of $4.62 per share.
Sales to IBM's Global Technology unit rose 2.7 percent year-over-year to $10.75 billion, sales to the Business unit were up 2.3 percent to $5.07 billion, and sales to the Software segment were up 8.8 percent to $8.499 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."
The company said it expects to report fiscal 2012 GAAP EPS of at least $14.16 and adjusted-EPS of at least $14.85. The Street is currently expecting fiscal 2012 EPS of $14.82.
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