IBM Stock: Tech Giant beats quarterly estimates as consulting sector leads growth

IBM stock fell Wednesday night, though the tech stalwart beat Wall Street expectations in the fourth quarter.




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During the December period, IBM (IBM) earned $3.60 per share, less certain items, on sales of $16.69 billion. Earnings beat analysts’ forecasts by a penny, according to FactSet. Those analysts also expected $16.15 billion in sales. Year-over-year, profits were up 7.5% and sales were roughly flat.

Excluding the impact of exchange rates, the strongest growth came from IBM’s consulting activity. Revenue increased more than 9% to $4.8 billion. Sales at the largest software company soared 8% to $7.3 billion, leading to a 7.4% jump for the infrastructure division. Infrastructure sales amounted to $4.5 billion.

IBM predicted sales would grow by a mid-single digit percentage for the full year. This would exclude the impact of exchange rates. IBM stock analysts forecast revenue of $60.8 billion, flat after sales growth of about 6% in 2022.

In after-hours trading in the stock market today, IBM stock fell 1.6% to 138.55. The shares are forming a flat base with a buy point at 153.31, according to MarketSmith.com.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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