IBM posts higher 4Q net income

IBM posts higher 4th-quarter net income but revenue declines

Associated Press
IBM posts higher 4th-quarter net income
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FILE - In this Tuesday, July 16, 2013, file photo, an IBM logo is displayed in Berlin, Vt. The company reports quarterly earnings on Tuesday, Jan. 21, 2014. (AP Photo/Toby Talbot, File)

ARMONK, N.Y. (AP) -- IBM's fourth-quarter net income grew 6 percent, surpassing Wall Street's expectations even though revenue fell. Its shares fell in extended trading after the results came out — and CEO Ginni Rometty said she's recommending that senior executives, including herself, forgo personal bonuses for the year.

IBM Corp. said Tuesday that it earned $6.19 billion, or $5.73 per share, in the October-December period. That's up from $5.83 billion, or $5.13 per share, in the same period a year earlier.

IBM's adjusted earnings were $6.13 per share in the latest quarter.

Revenue fell 5.5 percent to $27.7 billion from $29.3 billion.

Analysts, on average, had expected adjusted earnings of $5.99 per share on revenue of $28.27 billion, according to FactSet.

IBM is the world's largest technology-services company. Its results provide a gauge of businesses' appetite for technology spending.

Hardware revenue plunged 26 percent to $4.3 billion in the fourth quarter. Software revenue increased 3 percent to $8.1 billion, however, and services revenue slipped 4 percent to $9.9 billion.

The Armonk, N.Y., company is forecasting 2014 earnings of at least $17 per share and adjusted earnings of at least $18 per share. Analysts expect $18.02 per share.

Rometty said the company remains "on track" toward its adjusted earnings goal of at least $20 in 2015.

For the full year, IBM earned $16.5 billion, or $14.94 per share, compared with earnings of $16.6 billion, or $14.37 per share, in 2012. Adjusted earnings were $16.28 per share. Revenue fell 5 percent to $99.8 billion from $104.5 billion.

IBM's shares fell $5.04, or 2.7 percent, to $183.39 in after-hours trading. The stock had closed down $1.66 at $188.43 earlier.

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