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IBM delivers big earnings in fourth quarter

Software and mainframe sales powered IBM’s fourth quarter as results topped estimates across the board.

IBM on Tuesday reported better-than-expected fourth quarter earnings across the board led by software and hardware system sales.

The company reported fourth quarter net income of US$5.3 billion, or US$4.18 a share, on revenue of US$29 billion, up 7 percent from a year ago. Wall Street was looking for earnings of US$4.08 a share on revenue of US$28.3 billion for the fourth quarter.

In a statement, IBM CEO Sam Palmisano said the company has shifted to its "high-value businesses". That statement reflects how software is becoming an increasingly large chunk of IBM's revenue. IBM also reiterated that it will have operating earnings of at least US$20 a share in 2015.

Read more of "IBM delivers big earnings in fourth quarter, upbeat about 2011" at ZDNet.