IBM Beats Street, Stock Jumps

Sam PalmisanoIBM CEO Sam Palmisano

Photo: IBM

IBM shares are up More than 2% after hours after the company reported fourth quarter earnings ahead of analyst estimates, including record quarterly revenue and earnings. Hardware was the biggest contributor to the growth.Revenue was $29.0 billion, up 7% from last year (adjusting for currency fluctuations) and nearly $750 billion ahead of analysts’ consensus estimates. Earnings were up 9% to $5.3 billion, or $4.18 per share. Analysts expected $4.08.

The biggest driver of growth was IBM’s hardware business, which totaled $6.3 billion, up 21% from last year. System z mainframe revenue was up a whopping 69%.

IBM also offered strong guidance for 2011, expecting EPS to come in at at $12.56 (or $13.00 non-GAAP, which is how IBM began reporting future estimates last year).

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