IBM's 2013 outlook raises hopes for more tech spending
IBM, the world's largest technology services company, promised better than expected full-year growth after its fourth-quarter results beat estimates, a sign that fears of corporate delays in technology spending may have been overblown.
Companies had been widely expected to hold back on IT purchases in December in part because of worries about the so-called U.S. fiscal cliff. Automatic tax hikes and spending cuts would have been triggered had Congress not arrived at a deal to avert the cliff, and could have pushed the weak U.S. economy into recession.
International Business Machines Corp said on Tuesday that it plans to achieve earnings of at least $16.70 a share for the full year, above analysts' consensus forecast of $16.57.
Its quarterly net income rose 10 percent to $6.1 billion, or $5.39 a share from $4.71 a year earlier. Revenue dropped 1 percent to $29.3 billion.
Analysts had expected the Armonk, New York-based company to report net income of $5.95 billion, or $5.25 a share, on revenue of $29.05 billion, according to Thomson Reuters I/B/E/S.
Revenue in Brazil, India, Russia and China increased by 7 percent in 2012, or 12 percent adjusted for currency fluctuations. It grew 11 percent in the fourth quarter.
Some analysts said IBM's results were a sign that tech spending was improving.
"It is better than what people had feared," said Brian Marshall, an analyst at ISI Group.
"Virtually every segment did a little bit better than people expected. It supports the fact that things are getting better out there at least from a tech industry standpoint."
Andrew
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