Tech Giants Report Strong Earnings, Boosting Economic Confidence
The world's largest technology companies, IBM, Yahoo, and Motorola, delivered robust fourth-quarter earnings and worldwide growth, signaling a healthy global economy. IBM, the largest technology company, reported a 7% revenue increase, with strong sales in all its key businesses, including hardware, software, and consulting services. The company's net income reached a record $3.0 billion, exceeding Wall Street estimates.
Key Takeaways:
- IBM's fourth-quarter revenue rose 7% to $27.7 billion, with record net income of $3.0 billion, or $1.80 a share.
- Yahoo's revenue increased 62% to $1.1 billion, with net income of $691 million, or 25 cents a share.
- Motorola reported a 28% year-over-year revenue increase, thanks to strong sales of cellphones and networking gear, with net income of $654 million, or 27 cents a share.
- IBM's PC market share slipped in the fourth quarter, according to researcher IDC.
- Yahoo's top 100 advertisers spent more money with the company in the fourth quarter of 2004 than in all of 2002.
- IBM's PC division is expected to be spun off into a joint venture with Chinese PC maker Lenovo in the second quarter.
- IBM's revenue is expected to jump 7%, and its earnings per share 11% in 2005, excluding the PC division.
Statistics:
- IBM's fourth-quarter revenue: $27.7 billion
- IBM's fourth-quarter net income: $3.0 billion
- Yahoo's fourth-quarter revenue: $1.1 billion
- Yahoo's fourth-quarter net income: $691 million
- Motorola's year-over-year revenue increase: 28%
- IBM's PC market share in the fourth quarter: no data provided
- Yahoo's top 100 advertisers' spending in 2002: no data provided
- IBM's expected revenue growth in 2005: 7%
- IBM's expected earnings per share growth in 2005: 11%
Sources:
- Wall Street Journal
- Bloomberg News
- Reuters
- Pacific Crest Securities
- IDC (International Data Corporation)
- Verizon
- SBC
- Rogers Cable
- Lenovo