IBM stock jumps as earnings beat estimates

IBM Stock: Tech giant beats quarterly estimates as consulting business leads growth

IBM shares tumbled late Wednesday even as the tech mainstay beat Wall Street expectations for the fourth quarter.


During the December period, IBM (IBM) earned $3.60 per share, excluding some items, on revenue of $16.69 billion. Earnings topped analysts’ forecasts by a penny, according to FactSet. Those analysts were also expecting $16.15 billion in revenue. Year over year, earnings rose 7.5% and sales were roughly flat.

Excluding currency effects, the strongest growth came from IBM’s consulting business. Revenue rose more than 9% to $4.8 billion. Revenue at its much larger software business rose 8% to $7.3 billion, leading to a 7.4% increase in its infrastructure division. Infrastructure revenue was $4.5 billion.

IBM forecast full-year revenue growth in the mid-single-digit percentage range. That would eliminate the effects of exchange rates. IBM equity analysts were forecasting revenue of $60.8 billion, which would be flat after revenue growth of about 6% in 2022.

In after-hours trading on the stock exchange today, IBM shares fell 1.6% to 138.55. According to, shares are forming a flat base with a buy point at 153.31.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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