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IBM Profits Exceed Wall Street Expectations

IBM has reported exceptional end quarter results, topping the expectations of analysts at Wall Street.

The company announced that its net profit for the third quarter rose by 12 per cent from the previous year to end up at $3.6 billion. The company's revenue also increased by 3 per cent to end up at $24.3 billion.

Analysts had predicted that the company would report an earnings per share of $2.75 but IBM surprised everyone by posting an earnings per share rate of $2.82.

IBM's chief financial officer Mark Loughridge told a group of analysts during a conference call that the company had more than $11 billion in cash and will use it to invest in future growth.

IBM chairman, president and chief executive Samuel Palmisano, said in a statement to the AFP: “We achieved excellent performance in our growth markets unit, reflecting sustained investments through the downturn and the continued strength of the infrastructure build-out in these countries.”