Printed from http://www.electronista.com

IBM beats street, reveals fourth quarter $5.8 billion profit

updated 08:45 pm EST, Tue January 22, 2013

Migration away from hardware buoys IBM stock, net worth

IBM announced its fourth-quarter 2012 diluted earnings on Tuesday. The IT services company revealed earnings of $5.13 per share, compared with diluted earnings of $4.62 per share in the fourth quarter of 2011, an increase of 11 percent. Fourth-quarter net income was $5.8 billion compared with $5.5 billion in the fourth quarter of 2011, an increase of six percent. Total revenues for the fourth quarter of 2012 of $29.3 billion decreased one percent from the fourth quarter of 2011.

IBM said that it expects to deliver full-year 2013 GAAP earnings per share of at least $15.53. The 2013 operating earnings exclude $1.17 per share of charges for amortization of purchased intangible assets, other acquisition-related charges, and retirement-related items.

Highlights from the report include an increase from the company's growth markets of seven percent, $7.8 billion in revenue from the software segment, and $5.5 billion from IBM products such as WebSphere, Tivoli, and Lotus. IBM posted a 51.8 percent gross margin in the fourth quarter, up from 49.9 percent in the fourth quarter of 2011.

IBM ended 2012 with $11.1 billion of cash on hand, up approximately $1.6 billion year-over-year. The company returned $15.8 billion to shareholders through $3.8 billion in dividends and $12.0 billion of share repurchases.

"We achieved record profit, earnings per share and free cash flow in 2012. Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives -- growth markets, analytics, cloud computing, Smarter Planet solutions -- which support our continued shift to higher-value businesses," said Ginni Rometty, IBM chairman, president and chief executive officer.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News