IBM Beats Wall Street Profit Estimates
IBM’s quarterly profit exceeded estimates, and consequently shares rose 2.8 percent in extended trading. The company reported its fourth-quarter net income rose 9 percent to $5.3 billion, aligned with $29 billion in Q4 revenue. Its $4.18 per share earnings exceeded estimates averaging $4.08, as well as its 2009 Q4 earnings of $3.59 per share.
“I.B.M., which has been shifting its focus from commoditized hardware to higher-margin services and software over the last decade, said it signed services contracts worth $22.1 billion during the quarter, up 18 percent.”
In addition to an optimistic quantity (and size) of contracts signed, $142 billion worth of backlog in the services business was noticed, up from about $137 billion a year earlier. Overall, IBM’s gross profit margin rose to 49 percent from 48.3 percent a year earlier, and the company forecasts 2011 earnings of at least $12.56 a share compared to $11.52 in 2010.
IBM had seen an increase in profits, but that doesn’t mean its lessening its growth and partnership efforts. IBM and ARM expanded their partnership to include the 14-nanometer mobile processor manufacturing process.
IBM had its far share of interesting developments lately, and SiliconANGLE gave its take on the news. That includes the announcement IBM’s Watson super-computer will be challenging Jeopardy champions Ken Jennings and Brad Rutter, the company’s introduction of the revolutionary “racetrack memory” technology and IBM’s annual “Next Five in Five” list of predictions.
Since you’re here …
… We’d like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.
If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.
