Big Blue bounce lifts tech sector
IBM's fourth quarter results trounce expectations
IBM has allayed fears of a slowdown in tech spending after posting unexpectedly buoyant fourth quarter results.
The acknowledged industry bellwether beat analyst expectations on both profits and revenues, fuelling a significant bounce in its share price.
Revenues for the three months to 31 December leapt by 10 per cent to $28.9bn (£14.7bn), beating Wall Street estimates of $27.8bn. Earnings per share stood at $2.80, which trumped forecasts by 20 pence.
Sam Palmisano, chairman of IBM, said in a statement: “The broad scope of IBM’s global business - led by strong operational performance in Asia, Europe and emerging countries - drove these outstanding results.
“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.”
Big Blue said it will offer a more detailed insight into its results on Thursday.