EARNINGS ROUNDUP / IBM
- Share via
IBM Corp. has forecast significantly higher profit for 2009 than Wall Street expected, a sign that the company’s focus on high-margin services and software contracts is paying off even while overall sales are slumping. Its shares leaped 4% in extended trading.
The Armonk, N.Y., technology company predicted at least $9.20 a share in profit in 2009. Analysts surveyed by Thomson Reuters were expecting $8.75 a share.
The rosy forecast came as IBM reported that fourth-quarter profit increased 12%, beating analyst estimates, while revenue fell 6%, missing the consensus estimate.
IBM’s net income was $4.4 billion, or $3.28 a share, for the last three months of 2008. Its profit was $3.95 billion, or $2.80, in the same period a year earlier.
Analysts were expecting IBM to earn $3.03 a share.
Revenue was $27 billion, short of the $28.1 billion analysts were expecting. IBM said revenue would have decreased only 1% if not for currency fluctuations, but sales were down in all major geographic areas.
The earnings report came out after IBM shares closed down $2.94, or 3.5%, at $81.98. The stock jumped to $85.25 in after-hours trading.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
