Washington, January 20: Computer giant IBM has reported a stronger-than-expected 9 percent increase in its fourth-quarter earnings due to its cost-cutting plan.
IBM says its profit in the last three months of 2009 increased to $4.8 billion from $4.4 billion a year earlier.
The company says its fourth-quarter profit would push IBM to more profitable contracts.
International Business Machines Corp also improved its 2010 profit target by $11 a share, up from previous target of $10 to $11 per share. IBM’s quarter revenues surprised some analysts.
“I think there were some pretty big expectations built in, and you really needed to wow it,” Reuters quoted Stephen Massocca, managing director at Wedbush Morgan.
“IBM is just a machine. Throughout the downturn, they have provided consistent results and this is no different,” said Andy Miedler, an expert with Edward Jones.
——-Agencies