International Business Machines Corp (IBM), the world’s largest computer-services provider, posted fourth-quarter profit and sales that topped analysts’ estimates as companies spent more on computer systems and software. The shares climbed in late trading.
Per-share profit rose to $4.18, the Armonk, New York-based company said today in a statement, topping the $4.08 average estimate of analysts’ surveyed by Bloomberg. Sales climbed 6.6 per cent to $29 billion as hardware revenue got a boost from IBM’s newest mainframe and companies bought more analytics software. Analysts estimated sales of $28.3 billion on average.
Services signings rose 18 per cent to $22.1 billion, the first increase in a year. Full-year profit this year, excluding some costs, will be at least $13 a share, the company said.
“IBM’s well positioned as the economies around the world are starting to pick up and IT spending starts to pick up,” said Collins Stewart Plc analyst Lou Miscioscia, who rates the shares “buy” and doesn’t own them.
IBM climbed as much as 3 per cent to $155.24 in late trading, after rising 65 cents to $150.65 at 4 pm in New York Stock Exchange composite trading. The shares have gained 2.7 per cent this year.
