IBM shares rose sharply in early trading today after the world's biggest computer maker posted earnings that beat analyst expectations.
IBM rose nearly 10 per cent to $106 on the New York Stock Exchange, where it was the most active issue in early trading. The stock had jumped to $104 on Instinet after the close of regular trade yesterday.
Analysts noted IBM was in a good position due to its global reach, mainframe computers and an emphasis on corporate customers amid a slump in demand for consumer PCs.
Yesterday, Armonk, New York-based IBM posted a fourth-quarter net income of $2.7 billion, or $1.48 a share, compared with $2.1 billion or $1.12 a share in the year-ago period. That compared with the analyst consensus estimate for earnings of $1.46 a share, as compiled by First Call/Thomson Financial.
IBM Chairman and Chief Executive Louis Gerstner said that the company was well positioned to weather an uncertain economic climate.
That sentiment and IBM's solid earnings report contrasted with the woes of other computer makers in recent months, such as Apple Computer Inc., Compaq Computer Corp., Dell Computer Corp., Gateway Inc. and Hewlett-Packard Co..
Reuters