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.


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

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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