IBM Tops Q4 Expectations by $1B

Strong sales to developing markets send Big Blue stock soaring
By Jim O'Neill,  Newser User
Posted Jan 14, 2008 10:20 AM CST
Former President George H.W. Bush, right, shakes the hand of Samuel J. Palmisano, Chairman of the Board, President and Chief Executive officer, IBM Corporation at the 2007 National Conference on Volunteering...   (Associated Press)
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(Newser) – IBM shares soared after the company released preliminary quarterly earnings today that beat Wall Street’s predictions by $1 billion, reports Bloomberg. Shares popped 8% in early trading after the company said “strong operational performance in Asia, Europe, and emerging countries” helped it to a 24% bump in earnings from continuing operations, to $2.80 per share. Analysts had predicted $2.60.

Sales for the fourth quarter gained 10% to $28.9 billion, exceeding the $27.7 billion analysts estimated. IBM’s 2007 per-share earnings are up 18% over a year ago to $7.18, the company said; full results will be available Thursday. The company has increased staff in countries whose economies are outperforming the US economy to about 100,000.