IBM's Results Beat Forecasts; Company Raises 2010 Outlook

IBM reported fourth-quarter sales and earnings that topped expectations, and the computer giant raised its full-year outlook.

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The Dow component reported fourth quarter earnings of $3.59 a share. The tech giant earned $3.28 a share during the same period a year earlier.

Sales for the most recent quarter rose to $27.2 billion, upfrom $27 billion last year.

The company was seen earning $3.47 a share on revenue of $26.96 billion, according to a consensus estimate from Thomson Reuters.

IBM also said it now sees full-year 2010 earnings approaching at least $11 a share vs. a forecast of $10.89 a share.

Shares of IBM fell more than 1 percent in extended trading Tuesday. The company's stock finished the regular New York Stock Exchange session at $134.14.

"We concluded a strong year with a solid performance in the fourth quarter in which we again delivered growth in margins, profit and earnings," said IBM CEO Samuel Palmisano, in a prepared statement. "IBM continued to benefit from our strategic transformation, offerings that our clients value in this economy, and our commitment to developing countries around the world.

"We are confident about 2010 and our ability to achieve the high end of our long-term roadmap," he added.

IBM has been remarkably resilient throughout the economic crisis, boosting profits and raising its guidance at a time when many other large technology companies went in the opposite direction. But revenue has slipped at the same time, something that has concerned some investors.

—Wire services contributed to this report.