IBM posts higher 4th-quarter net income

Published on NewsOK Modified: January 21, 2014 at 5:00 pm •  Published: January 21, 2014
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ARMONK, N.Y. (AP) — IBM's fourth-quarter net income grew 6 percent, surpassing Wall Street's expectations even though revenue declined. Its shares fell in extended trading after the results came out — and CEO Ginni Rometty said she's recommending that senior executives, including herself, forgo personal bonuses for the year.

IBM Corp. said Tuesday that it earned $6.19 billion, or $5.73 per share, in the October-December period. That's up from $5.83 billion, or $5.13 per share, in the same period a year earlier. Results benefited from tax audit settlements that lowered IBM's tax rate to 11.2 percent in the quarter, from 25.5 percent a year earlier.

IBM's adjusted earnings were $6.13 per share in the latest quarter.

Revenue fell 5.5 percent to $27.7 billion from $29.3 billion.

Analysts, on average, had expected adjusted earnings of $5.99 per share on revenue of $28.27 billion, according to FactSet.

IBM is the world's largest technology-services company. Its results provide a gauge of businesses' appetite for technology spending. The company's business has been fairly stable because many of its customers sign long-term contracts that guarantee regular revenue, even when the economy is tough. It also helps that IBM no longer has a direct connection to the slumping PC industry.

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