IBM posts higher 4th-quarter net incomeJanuary 21, 2014 @ 3:00 pm
ARMONK, N.Y. (AP) - IBM's fourth-quarter net income grew 6 percent, surpassing Wall Street's expectations even though revenue declined. Its shares fell in extended trading after the results came out _ and CEO Ginni Rometty said she's recommending that senior executives, including herself, forgo personal bonuses for the year.
IBM Corp. said Tuesday that it earned $6.19 billion, or $5.73 per share, in the October-December period. That's up from $5.83 billion, or $5.13 per share, in the same period a year earlier. Results benefited from tax audit settlements that lowered IBM's tax rate to 11.2 percent in the quarter, from 25.5 percent a year earlier.
IBM's adjusted earnings were $6.13 per share in the latest quarter.
Revenue fell 5.5 percent to $27.7 billion from $29.3 billion.
Analysts, on average, had expected adjusted earnings of $5.99 per share on revenue of $28.27 billion, according to FactSet.
IBM is the world's largest technology-services company. Its results provide a gauge of businesses' appetite for technology spending. The company's business has been fairly stable because many of its customers sign long-term contracts that guarantee regular revenue, even when the economy is tough. It also helps that IBM no longer has a direct connection to the slumping PC industry.
Hardware revenue plunged 26 percent to $4.26 billion in the fourth quarter. Revenue in the company's biggest business _ services _ slipped 3.6 percent to $9.92 billion, while software revenue increased 2.8 percent to $8.14 billion.
The Armonk, N.Y., company is forecasting 2014 adjusted earnings of at least $18 per share. Analysts expect $18.02 per share.
Rometty said IBM remains "on track" toward its adjusted earnings goal of at least $20 in 2015.
For the full year, IBM earned $16.5 billion, or $14.94 per share, compared with earnings of $16.6 billion, or $14.37 per share, in 2012. Adjusted earnings were $16.28 per share. Revenue fell 5 percent to $99.8 billion from $104.5 billion.
IBM's shares fell $5.68, or 3 percent, to $182.75 in after-hours trading. The stock had closed down $1.66 at $188.43 earlier.
(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
The Seahawks have returned to Renton, but not all of them as Danny O'Neil explains
On the Eastside
An on-going investigation underscores a growing sex-trafficking problem in Bellevue
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.