I.T. giant International Business Machines Corp. (IBM) said late Tuesday that its fourth quarter profit jumped 9% from last year, helped by cost cutting amid nearly flat revenue.
The Armonk, New York-based company reported fourth quarter net income of $4.8 billion, or $3.59 per share, compared with $4.4 billion, or $3.27 per share, in the year-ago period. Revenue rose less than 1% from last year, to $27.2 billion.
On average, Wall Street analysts expected a smaller profit of $3.47 per share, on revenue of $27 billion.
Looking ahead, the company predicted a full-year 2010 profit of $11 per share, up from a prior forecast for $10 to $11 per share. For the first quarter, IBM said it expects revenue of $22.8 billion to $23.0 billion, while analysts expect $22.3 billion.
IBM shares fell $2.17, or 1.6%, in premarket trading Wednesday.
The Bottom Line
We have been recommending shares of IBM since Sept.16, when the stock was trading at $119.35. The company has a dividend yield of 1.64%, based on last night's closing stock price of $134.14.
International Business Machines Corp. (IBM) is a "recommended" dividend stock, holding a Dividend.com DARS Rating of 3.5 out of 5 stars.
