IBM impresses with earnings

NEW YORK (CNNMoney.com) -- IBM issued preliminary quarterly earnings Monday that handily beat Wall Street's estimates, sending its stock soaring.

Armonk, N.Y.-based IBM (IBM, Fortune 500) shares gained nearly 10 percent in pre-market trading on the announcement.

The tech bellwether said fourth-quarter earnings from continuing operations rose to $2.80 a share, up 24 percent from $2.26 a share a year earlier. Wall Street had been expecting earnings of $2.60 a share, according to Thomson Financial.

IBM is due to formally report its results Thursday.

IBM said revenue for the quarter gained 10 percent to $28.9 billion, also beating estimates.

"The broad scope of IBM's global business - led by strong operational performance in Asia, Europe and emerging countries - drove these outstanding results," Samuel Palmisano, IBM's chairman and CEO said in a statement.

Palmisano also offered an upbeat outlook, saying the company is on track to reach its 2010 earnings target.

IBM said 2007 earnings jumped to $7.18 a share, up 18 percent from 2006, helped by the sale of its printing systems division during the second quarter.

The company said it would provide more detailed information about its quarterly and full-year results Thursday.