Beating Wall Street’s projections by a great margin, IBM Corp. has announced that its profits for the fourth quarter for the fiscal year 2008 rose by 17 percent on year-over-year basis.
In spite of such an impressive rise in profits, the sales revenues for the same quarter declined by six percent to $27billion, the company noted.
Earnings per share jumped by 17 percent to $3.28 and its net income had climbed by 12 percent to $4.43billion.
In addition, for the entire fiscal year, IBM said its revenues rose by 4.9 percent as against the previous fiscal to $103.6billion, along with its earnings per share rose by 24.4 percent to $8.93, and net income for the year increased by 12.4 percent to $12.3billion.
IBM’s CEO Sam Palmisano, attributed these impressive fourth quarter results to company’s migration to more profitable sectors of the industry, its huge investments in growth regions of the world, and its efforts in driving productivity through global integration.
The company also forecasted that its earnings per share will rise to $9.20 in 2009 against the $8.77 as speculated by the analysts.
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IBM rosy projections did not prevent Big Blue's shares to slip by 3.46 percent during day trading although, in all fairness, it did go up by 4.05 percent in after hours transactions. Even if they are down by nearly 21 percent over the last 12 months, IBM outperforms the likes of Sun Microsystems, Dell and HP. But make no mistake, 2009 will be a tricky year for the technology sector overall.
(Wall Street Journal)