IBM's earnings announcement, while positive for the outlook, failed to grow IBM stock as it dropped in after hour trading.
IBM earnings show that it the corporation has achieved a 9% increase in profits during the last quarter of of the past year. This is the first time that IBM's revenue grew in the past one and a half year.
The increased in IBM's earnings was slightly less than 1%. However, this is significant because some analysts feared that if they did not grow, the technology company would struggle to continue its increases in earnings.
The income from services and software sales grew, while equipment sales declined. Consulting sales dropped, however IBM said sales of technology services and sales coming from outsourcing increased by 4.4 percent to 10.1 billion dollars. The company, during the last quarter sold software worth of 6.58 billion, which constitues 2.4 percent rise.
One thing, which is noteworthy in IBM's earnings announcement is the fact that the company said it expects earnings of at least $11 dollars per share in 2010. In its previous forecast the upper range of projected earnings was between 10 and 11 dollars.
In the 4th quarter IBM made $4.81 billion dollars in profit.
IBM, which recently put its Lotus Notes business email blending software into iPhone and the Blackberry, said it's not forgetting Google. The company said it will have its Lotus Notes ready for Android before Microsoft unveils its Android-based app for Exchange.
Analysts say IBM earnings may project stability into the markets. Since IBM announced a good outlook for the future the markets may breath better tomorrow. Many market observers and analysts say that while earnings are essential, all eyes are on what type of outlook companies will offer for 2010.
Written by Armen Hareyan
HULIQ.com
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