Shares of International Business Machines Corp. (NYSE: IBM), an information technology company, have risen sharply in early trading today after the company reported strong fourth-quarter financial results.
Ginni Rometty, Chairman, President and CEO of IBM, said that the company achieved record profit, earnings per share and free cash flow in 2012 and its performance in the fourth quarter and for the full year was driven by its strategic growth initiatives, which support the continued shift to higher-value businesses.
Rometty further said that looking ahead, the company continues to invest to deliver innovations for the enterprise in key areas such as big data, mobile solutions, social business and security, while expanding into new markets and reaching new clients.
For the fourth quarter of 2012, IBM reported diluted earnings per share of $5.13 per share, up from $4.62 per share reported for the same period in the previous year. On a non-GAAP basis, the company reported earnings of $5.39 per share, compared to $4.71 per share reported for the same period in the previous year.
Net income for the fourth quarter of 2012 was $5.8 billion, up from $5.5 billion reported for the same period in the previous year. On a non-GAAP basis, net income for the quarter was $6.1 billion, compared to $5.6 billion reported for the same period in the previous year.
IBM reported total revenue of $29.3 billion for the fourth quarter of 2012, down 1% over the same period in the previous year. The company’s revenue in its growth markets rose 7%. Revenues in BRIC (Brazil, Russia, India, China) countries rose 11% in the quarter.
Looking ahead to 2013, IBM expects full-year GAAP earnings of $15.53 per share and non-GAAP earnings of $16.70 per share.
IBM shares are currently trading 5.73% higher at $203.32 on above average volume of 4.75 million.
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