IBM Beats Street

Investors hoping IBM’s latest financials would keep the tech rally alive seem to have gotten their wish. Reporting fourth-quarter earnings after the close of trading Tuesday, Big Blue posted a profit of $4.8 billion, or $3.59 a share, on $27.23 billion in revenue.

Analysts surveyed by Thomson Reuters had expected IBM (IBM) to earn $3.47 a share on revenue of $26.96 billion.

“We concluded a strong year with a solid performance in the fourth quarter in which we again delivered growth in margins, profit and earnings,” IBM CEO Sam Palmisano said in a release. “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.”

Looking ahead, IBM said it now expects a profit of at least $11 a share in 2010 compared with a previous target of $10 to $11 per share.