International Business Machines Corp. reported Tuesday a gain of 12 percent on its fourth quarter surpassing forecasts and breaking the trend of dismal results in technology companies hit by the economic crisis.
IBM also forecasted its net income on 2009 will increase to at least $9.20 a share which is more than the $8.75 forecasted by analysts, according to a Bloomberg survey.
Net income climbed 12 percent to $4.4 billion or $3.28 a share, from $3.95 billion in the same period of 2007, IBM reported Tuesday. Revenue in the quarter was $27 billion, down 6 percent which reflected a downturn in hardware sales and a stronger dollar.
A strong fourth quarter capped an outstanding year, said Samuel J. Palmisano, chief executive at IBM in a statement.
Shares of IBM were up 4 percent to $85.28 each in after hours trading in the New York stock Exchange Tuesday. Shares had closed 3.46 percent down Tuesday.