Driven by surprisingly high revenue from product sales and its service businesses, IBM posted record earnings yesterday, surpassing analysts' expectations by a wide margin.
Net income for the first quarter nearly quadrupled to about $1.3 billion, or a record $2.12 per share, compared with $336 million, or 54 cents a share, for the comparable period a year earlier.
The results add luster to the reputation of IBM Chairman and Chief Executive Louis V. Gerstner.
He was brought in two years ago, after multibillion-dollar losses, to transform the company, then a bloated giant, back into an industry leader.
After yesterday's results were announced, IBM's share price jumped more than $3 on the New York Stock Exchange and traded as high as $91 during the day, its highest price in more than two years, before closing at $89, up $1.875.
