IBM (IBM) Easily Beats Q4 Estimates; Guides FY11 EPS

January 18, 2011 4:18 PM EST
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International Business Machines (NYSE: IBM) posted better-than-expected fourth-quarter results on Tuesday, pushing shares higher in aftermarket movement.

The information technology company posted fourth-quarter earnings of $4.18 per share, 10 cents better than the analyst estimate of $4.08 per share.

Revenue for the company rose 7 percent to $29 billion in the period, being the market consensus of $28.26 billion.

Gross profit margin for IBM in the quarter was 49 percent, up 0.8 percentage points.

"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 J. Palmisano, IBM chairman, president and chief executive officer. "We also capped a decade in which our shift to high-value businesses, our global integration of IBM, our investment in research and development of almost $60 billion and our acquisition of 116 companies have helped us to nearly triple our EPS and return more than $100 billion to shareholders."

Looking forward, the company sees full-year EPS of at least $12.56 on a GAAP basis, and sees operating EPS of at least $13. The Street is currently looking for $12.58.

UPDATE: Click here to see some highlights from IBM's Q4 conference call.

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