One of the world’s largest IT companies IBM, today reported fourth quarter earnings that beat most analysts’ expectations, with earnings up 24pc on last year.
For the fourth quarter of 2007, IBM reported diluted earnings of US$2.80 per share from continuing operations, an increase of 24pc, compared with earnings of US$2.26 per share in the fourth quarter of 2006.
The company also reported fourth-quarter revenue of US$28.9bn, an increase of 10pc as reported, including 6 points of currency benefit, compared with the fourth quarter of 2006.
IBM reported full-year 2007 diluted earnings of US$7.18 per share, including 5 cents per share relating to the sale of the Printing Systems Division in the second quarter, an increase of 18pc, compared with diluted earnings of US$6.06 per share in 2006.
The company also recorded full-year revenue of US$98.8bn, an increase of 8pc, including 4 points of currency benefit.
IBM’s cash balance at the end of 2007 was more than US$16bn, with strong free cashflow performance.
“The broad scope of IBM’s global business, led by strong operational performance in Asia, Europe and emerging countries, drove these outstanding results,” said Sam Palmisano, IBM chairman, president and chief executive officer.
“IBM is well-positioned as we begin 2008, as a result of our global business reach, solid, recurring revenue stream and strong financial position. We are on track to achieve our long-term earnings-per-share roadmap objective in 2010.”
IBM’s full 2007 results will be released later this week.
By John Kennedy
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