International Business Machines 's fourth-quarter profit grew 8.7% and posted higher margins.

IBM also sees double-digit-percentage software sales growth in its current quarter and consistent earnings-per-share growth throughout 2010. Chief Financial Officer Mark Loughridge also said during a conference call that IBM's 2010 tax rate should be 26% to 26.5%, roughly in line with last year's.

Despite results that topped consensus expectations, IBM shares fell 2% to $131.46 in after-hours trading amid 2010 per-share earnings guidance that some analysts described as conservative.

IBM has benefited for years from its shift toward sales of software and services, particularly those geared toward improving efficiencies of infrastructure systems, and away from sales of hardware. And while IBM has noted that the global economy has stabilized and continue to improve through 2010.

IBM posted a fourth-quarter profit of $4.81 billion, or $3.59 a share, up from $4.43 billion, or $3.27 a share, a year earlier. Revenue inched up 0.8%, to $27.23 billion, but was down 5% when adjusted for currency.

By: DocMemory
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