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IBM beats estimates with $6.1-billion profit

International Business Machines Corp. said on Tuesday its quarterly net income rose 10 per cent to $6.1-billion (U.S.), or $5.39 a share from $4.71 a year earlier. Revenue dropped 1 per cent to $29.3-billion.

FOCKE STRANGMANN/AP

IBM, the world's largest technology services company, reported fourth-quarter earnings and revenue that beat estimates on the back of growth in emerging markets.

International Business Machines Corp said on Tuesday its quarterly net income rose 10 per cent to $6.1-billion (U.S.), or $5.39 a share from $4.71 a year earlier. Revenue dropped 1 per cent to $29.3-billion.

Analysts had expected the Armonk, New York-based company to report net income of $5.95-billion, or $5.25 a share, on revenue of $29.05-billion, according to Thomson Reuters I/B/E/S.

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Revenue in Brazil, India, Russia and China increased by 7 per cent in 2012, or 12 per cent adjusted for currency fluctuations.

IBM estimated earnings of at least $16.70 a share for the full year, above analysts' consensus forecast of $16.57.

Some analysts said IBM's results were a sign that the tech spending environment was improving.

"It is better than what people had feared," said Brian Marshall, an analyst at ISI Group.

"Virtually every segment did a little bit better than people expected. It supports the fact that things are getting better out there at least from a tech industry standpoint."

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