IBM (IBM) Higher After Positive Earnings Surprise

Shares of IBM (NYSE: IBM) are 4% higher in after-hours trading Tuesday after the company surprised the Street with better than expected Q4 results and guidance.

IBM reported Q4 EPS of $3.28, 25 cents better than the analyst estimate of $3.03. Revenue for the quarter was $27 billion, versus the consensus of $28.15 billion.

IBM said it is "confident about 2009" and sees 2009 EPS of at least $9.20, versus the consensus of $8.75. The company also said, "we are ahead of pace on our roadmap for $10 to $11 per share."

IBM ended 2008 with $12.9 billion of cash on hand and generated free cash flow of $14.3 billion, up $1.9 billion year over year, excluding Global Financing receivables. IBM said, "the balance sheet remains strong, and the company is well positioned to take advantage of opportunities."

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